Wolfe starts Target at Underperform, sees need for significant reinvestment

Wolfe Research initiated coverage of Target (TGT) with an Underperform rating and $80 price target After persistent share losses and weak execution, Target will need to make a significant reinvestment in labor, capital expenditures, and advertising to sustainably improve same-store sales momentum, the analyst tells investors in a research note. With the business comping down low-single digits and a rebase of earnings ahead, the firm said it cannot recommend the stock despite it having the most earnings torque in its coverage.