Goldman Sachs Downgrades Target (TGT) to Neutral from Conviction Buy

Goldman Sachs downgrades Target (NYSE: TGT) from its Conviction Buy List to Neutral, saying the retailer is not positioned well in its recovery barbell thesis. The firm lowered their price target form $57 to $54.

The firm said, "While we continue to expect recovering discretionary sales to drive improving fundamentals, we see (1) a more aggressive Wal-Mart hampering margins across the discount space—as we outlined in our recovery barbell thesis, we are opting to steer clear of those in Wal-Mart’s way—and (2) less upside to 4Q EPS, given an expected +MSD increase in SG&A (vs. our prior +3% estimate)"

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