Target's problems leave analysts the most negative since 2018

(Bloomberg) -Wall Street’s enthusiasm for Target Corp. is at the lowest in six years, as disappointing earnings from the Great Cassier Trader encourage a series of analysis downgrades. Bank of America, Melius Research LLC and Telsey Advisory Group have all returned from their buy-equivalent calls since the company’s revenue report Wednesday, providing issues with the difficult macroeconomic background, an uncertain prospects and exposure to President Donald Trump’s tariff policy. This is the consensus rating of Target dragged-a Bloomberg standards for the ratio of buying, holding and selling recommendations to 3.5, the lowest it has been since November 2018, and under peers such as Walmart Inc., TJX COS Inc. and Costco Wholesale Corp. “Despite the appreciation of the 10-year low, we are a greater uncertainty than the top weakness,” Bank of the Bank of the Bank of the Bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank of the bank from the Bank of the Robert. Toscano wrote in a note published on Wednesday and downgraded the dealer to neutral. Target’s shares rose almost 3% early Thursday afternoon after a earnings-related decline in the previous session. The company reduced its annual sales forecast on Wednesday following a sharp withdrawal in consumer spending, along with a hit of rates and boycotts associated with the decision to stop diversity initiatives. The pressure is now growing on Brian Cornell, the CEO of the retailer, with questions about his ability to regain growth after two years of meager results. Joseph Feldman, analyst of Telsey Advisory Group, said his confidence in Target’s investment story was “shaken” by the company’s poor performance in the first quarter, as well as the reduced and extensive annual guidance. Feldman downgraded the share to the market performance. Meanwhile, a ‘confluence of factors’ has led Melius’ Jacob Aiken-Phillips to downgrade the company to hold, including Target’s increased exposure to rates compared to the broader retail landscape. Aiken-Phillips also marked the growing setback of consumers to the Bullseye strategy. “Even before rates re-entered the spotlight, Target saw softness in discretionary categories,” Aiken-Phillips wrote in a note published on Thursday. “Now, a growing setback about the company’s Dei policy adds another low risk.” Another problem, according to Telsey’s Feldman, is that competitors, including Amazon.com Inc., Costco and Walmart, apparently market share in some of Target’s nuclear categories-especially among consumers in the higher revenue-by offering “greater variety, sharper prices and improved comfort”. However, in the longer term, Bank of America’s Ohmes and Toscano notes that growth in the company’s high margin enterprises can support Marketplace-Groter margin stability. Target now sold 12 buy-equivalent recommendations, 26 strokes and two. -With help from Janet Freund. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP