Jefferies & Co. announced on Wednesday that they have lowered their rating on on discount retailer, Target Corporation(TGT).
The firm reported that they have downgraded TGT from a “Buy” to a “Hold,” and have decreased its price target from $74 to $59. This price target suggests a slight decline from the stock’s current price of $59.30.
An analyst from the firm commented, “while we had high hopes for Target this season, we believe the company continued to struggle in a few areas, including poor online execution, soft December sales, poor results with the Neiman Marcus merchandising initiative, increased price competition (greater price matching), and more markdowns y-y. Tough comparisons loom in Q1, so shares may stay in a narrow range,” the analyst comments.
Target shares were mostly flat during premarket trading Wednesday. The stock has increased 15.5% in the past year.
The Bottom Line
Shares of Target Corporation (TGT) have a 2.43% dividend yield, based on Monday’s closing stock price of $59.17. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$64 price levels.
Target Corporation(TGT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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