Goldman Sachs Comments on Target's (TGT) CEO Change

Goldman Sachs maintained a Buy rating on Target (NYSE: TGT) with a price target of $69.00. Comments follow news Gregg Steinhafel has stepped down from his positions as Chairman of the Target board of directors, president and CEO. Analyst Matthew J. Fassler thinks a change in management may help Target address some of its challenges.

"We believe that a change in management may help TGT address some of its challenges – notably, underperformance in Canada – with a new perspective; the company has not been sufficiently concerned about the underperformance of that launch, in our view. At the same time, we note that TGT has typically promoted its CEOs from within. It will take a well-rounded executive, who can hold the merchandising culture in high regard but make tough strategic decisions, to execute on this opportunity," said Steinhafel.

"The only implications for earnings would involve a potential delay of the buyback past mid-year, when TGT should have more clarity on the data breach, should the board want to give a new CEO say over capital structure. That said, putting Mr. Mulligan in charge for now would increase the probability of the buyback continuing, in our view," he said.

For an analyst ratings summary and ratings history on Target click here. For more ratings news on Target click here.

Shares of Target closed at $62.01 yesterday.

You May Also Be Interested In

• Visa (V) Tops Q2 EPS by 7c, offers guidance
• Western New England Bancorp, Inc. (WNEB) Tops Q1 EPS by 2c
• Vicor Corp (VICR) Misses Q1 EPS by 23c