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Janney Capital Slashes Rating, Target, and Estimates for Target Corp (TGT)

Retail giant Target Corporation ( TGT ) on Monday caught a big downgrade from analysts at Janney Capital, who cited margin pressures that would affect its bottom line.

The firm said it cut its rating on TGT from "Buy" to "Neutral" while reducing its price target from $58 all the way down to $46. That new target suggests a small downside to the stock's Friday closing price of $46.33.

A Janney analyst said TGT will "struggle to meet estimates as it will be required to invest in gross margin." Accordingly, the firm cut its 2012 earnings estimate from $4.15 to $3.78 per share, while the consensus estimate sits at $4.16 per share.

Target shares fell 46 cents, or -1%, in premarket trading Monday.

The Bottom Line

Shares of Target ( TGT ) have a 2.59% dividend yield, based on Friday's closing stock price of $46.33. The stock has technical support in the $43-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels.

Target Corporation ( TGT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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