TD Cowen Reiterates Cautious View on Target Corp. (TGT)

On May 21, TD Cowen analyst Oliver Chen continued his cautious view on Target Corp. (NYSE:TGT) with a Hold rating. With his new earnings estimates, the analyst derived a price target of $105, down from his earlier target of $140.

The analyst highlighted that the company’s Q1 results missed his expectations because of softer comparable sales and weaker customer traffic.

The analyst projects that the company may require long-term, strategic changes in the coming quarters to shore up margins and resolve the issues of higher inventories. Despite such measures, the company may continue to face lower sales and higher costs eating into the margins, due to ongoing weakness in consumer spending, as per the analyst. The impact of the tariffs is proving to be another headwind. Therefore, the analyst chooses to remain on the sidelines.

Target Corp. (NYSE:TGT) is a general merchandise retailer with nearly 2,000 stores across the United States.

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Disclosure: None.