Deutsche Bank downgraded Target (TGT) to Hold from Buy with a price target of $108, down from $184. The company’s Q3 report this morning indicate a “significant deterioration” in market share, primarily to Walmart (WMT) and Amazon (AMZN), the analyst tells investors in a research note. The firm says this, coupled with the necessary investments in infrastructure and supply chain modernization to remain competitive, suggests a longer time-line to recovery than initially projected for Target. Deutsche believes regaining lost market share will likely require substantial price investments and stepped up promotions, pressuring margins and profitability. As such, even with today’s selloff, it finds Target’s risk/reward as balanced.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on TGT:
- Target downgraded to Hold from Buy at Deutsche Bank
- Morning Movers: Target tumbles following earnings release
- Target sees FY25 capital expenditures $4B-$5B
- TGT Earnings: Target Dives after Slashing Q4 Forecast amid Disappointing Q3 Results
- Citi downgrades Target to Neutral after ‘very poor results’
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
