UPDATE: MKM Partners Downgrades Target (TGT) to Neutral

MKM Partners downgraded Target (NYSE: TGT) from Buy to Neutral with a price target of $63.00 (from $71.00). Analyst Patrick McKeever thinks news the company's CEO is stepping down adds even more uncertainty and doesn't' improve clarity on when Target Canada might become profitable.

"Target had a tough FY13 with Canada and the systems breach, and Mr. Steinhafel may have made some miscalculations and missed some opportunities, but we think external factors played a greater role. We were also hoping to see consistency in the C-Suite following recent hires," said McKeever .

"We believe weather was a negative for much of 1Q14 and see moderate risk to our forecast for comps of (1.0%) and EPS of $0.73, but our checks suggest some late-quarter pickup in traffic. That said, we continue to hear concerns from consumers about the late-2013 data breach and believe it continues to hurt sales and RedCard usage/signups. Target's recent hiring of Bob DeRodes as CIO and the planned shift to MasterCard chip-and-PIN technology should boost consumer and investor confidence, but some residual impact from the breach could linger through much of FY14," he added.

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 $59.87 yesterday.

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