Target’s Long-Term Challenges: Sell Rating Due to Digital and Competitive Pressures

Analyst Robert Ohmes of Bank of America Securities maintained a Sell rating on Target, retaining the price target of $93.00.

Robert Ohmes has given his Sell rating due to a combination of factors impacting Target’s long-term performance. Despite positive developments such as the successful start of TGT Circle Week and the sales lift from remodeled stores, Ohmes sees challenges ahead. Target faces risks from slowing digital sales growth and lacks scale in digital advertising and third-party marketplace operations, which could hinder its competitive edge.
Additionally, Ohmes points out that Target is encountering pricing and merchandising headwinds. The competitive landscape is intensifying with major players like Walmart and Amazon posing significant threats. These factors contribute to the perception of long-term sales and margin risks, leading to the maintained Underperform rating.