Citi downgrades Target to Neutral after 'very poor results' - InvestingChannel

Citi downgrades Target to Neutral after ‘very poor results’

Citi analyst Paul Lejuez downgraded Target (TGT) to Neutral from Buy with a price target of $130, down from $188. Although the company’s Q3 “may have had some unique challenges,” the “very poor results” show Target is likely losing share to Walmart (WMT), the analyst tells investors in a research note. The firm says that Walmart’s market share gains coming largely from higher income consumers, Target seems to be the one most at risk of losing additional share. Target is likely to need to be more promotional to drive traffic and sales, which makes its fiscal 2025 “much more uncertain,” contends Citi. Even with the stock trading down to the $128 level in the premarket, the risk/reward is now more balanced, the firm adds. Target shares are down 19%, or $29.10, to $126.90 in premarket trading.

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