Target, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Zhihan Ma from Bernstein assigned a Sell rating on the stock and has a $80.00 price target.
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Zhihan Ma has given his Sell rating due to a combination of factors impacting Target’s financial performance and strategic outlook. The company has reported its third consecutive quarter of declining comparable sales, with a notable decrease in both brick-and-mortar and e-commerce channels. This downward trend in sales, coupled with lower-than-expected margins, has raised concerns about Target’s ability to achieve its financial targets.
Additionally, Target’s management has outlined plans for significant capital expenditures in the coming fiscal year, aimed at improving merchandising, store experience, and technology. However, there is uncertainty about whether these investments will effectively address the company’s challenges, particularly its underinvestment in omni-channel supply chain and technology compared to competitors like Walmart. Given these issues, Zhihan Ma remains cautious about Target’s near-term prospects and has adjusted the target price to reflect the weaker outlook and increased investment needs.
According to TipRanks, Ma is a 3-star analyst with an average return of 4.6% and a 57.63% success rate. Ma covers the Consumer Defensive sector, focusing on stocks such as Dollar Tree, Walmart, and Dollar General.
In another report released today, Barclays also maintained a Sell rating on the stock with a $91.00 price target.