J.P. Morgan analyst Christopher Horvers has maintained their neutral stance on TGT stock, giving a Hold rating today.
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Christopher Horvers has given his Hold rating due to a combination of factors impacting Target’s performance. The company’s recent earnings report showed mixed results, with earnings per share slightly exceeding expectations, but comparable sales falling short of projections. While Target’s gross margin aligned with forecasts, the company demonstrated effective cost management in its selling, general, and administrative expenses. Despite these positives, Target’s sales performance in key categories like home, apparel, and beauty lagged behind market growth, which has been a consistent trend throughout the year.
Looking forward, Target faces challenges from past events such as a boycott and tariff-related costs, which have impacted its gross margin. The company’s strategy to re-engage its customer base and improve merchandising is underway, but the effectiveness of these efforts remains to be seen. Additionally, Target’s incoming CEO plans to invest significantly in growth initiatives, which could enhance its market position. However, the competitive landscape, particularly from companies like Walmart and Amazon, continues to pose a threat. These factors contribute to the Hold rating, as the outlook for Target is seen as neutral amidst a complex operating environment.
According to TipRanks, Horvers is a 5-star analyst with an average return of 9.6% and a 62.01% success rate. Horvers covers the Consumer Cyclical sector, focusing on stocks such as Best Buy Co, Ulta Beauty, and AutoZone.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $90.00 price target.