Target (TGT – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Zhihan Ma from Bernstein downgraded the rating on the stock to a Sell and gave it a $80.00 price target.
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Zhihan Ma’s rating is based on several factors, primarily concerning leadership and competitive challenges facing Target. With CEO Brian Cornell’s tenure nearing its end, there is uncertainty about who will lead the company next. While internal candidates like Michael Fiddelke and Rick Gomez are potential successors, there is a sentiment among investors that an external candidate might be better suited to navigate the company’s current challenges.
Target is facing stiff competition in its core categories, particularly in Home Furnishings and Apparel, despite having a strong portfolio of private label brands. The complexities of e-commerce and the associated pressure on margins further complicate the situation. The ideal candidate for the CEO position would need to have a diverse skill set, including omni-channel and turnaround experience, to effectively steer the company towards growth. These uncertainties and competitive pressures contribute to the Sell rating for Target’s stock.
TGT’s price has also changed moderately for the past six months – from $136.390 to $97.600, which is a -28.44% drop .