Truist says substantial Target changes less likely under veteran, trims target

Truist analyst Scot Ciccarelli lowered the firm’s price target (TGT) on Target to $102 from $107 and keeps a Hold rating on the shares after the company reported in-line Q2 results and promoted COO Michael Fiddelke to CEO. The firm, which thinks the company needs to make “substantial” investments and changes to improve its long-term relevance, contends that this “seems less likely to occur under a long-time Target veteran.” Given the amount of investment the firm sees as needed, it argues that the medium to long-term earnings power “remains questionable.”