Oppenheimer analyst Rupesh Parikh maintains $Target (TGT.US)$ with a buy rating, and adjusts the target price from $185 to $165.
According to TipRanks data, the analyst has a success rate of 64.0% and a total average return of 11.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Target (TGT.US)$'s main analysts recently are as follows:
Following the company's disappointing Q3 earnings and subdued forward guidance, expectations have been adjusted for ongoing challenges in Q4. The projection for a steady Q4 in sales underscores a persistent sluggishness in discretionary spending and calendar influences. It is anticipated that the cost challenges experienced in Q3 will continue to affect performance in the upcoming quarter.
Target's Q3 results underperformed in terms of margins, primarily due to an accumulation of inventories based on early receipts, and an intensified discounting strategy. This situation was further exacerbated by a higher proportion of sales occurring during promotional periods, coupled with challenges posed by unseasonably warm weather affecting apparel sales. Analysts acknowledge that while these may be mostly cyclical headwinds, the responsibility to demonstrate resilience lies with the company.
Target needs to address negative trends in home, apparel, and hardlines, improve digital channel profitability, and ensure consistency outside of seasonal or promotional periods.
Note:
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