JPMorgan Reiterates Neutral Rating on Target (TGT)
JPMorgan analyst Christopher Horvers reiterated a Neutral rating and $105.00 price target on Target (NYSE: TGT).
The analyst comments "Our take: 1Q comp and EPS fall into the bear’s range; FY guide cut matches expectations on the lower end of the range; inventory/markdown pressures in focus. The textures of the 1Q print (comp at lower end of previewed expectations and gross margin miss with inventory up 11% YOY) hit the bear case with the updated guide better at the high end of the range (bears in the $7-8 range per our work). CNBC reported that TGT cited discretionary purchasing pressures driven partly by tariff uncertainty and the company’s DEI announcements. The inventory overhang will be in focus in discretionary categories, as well as how the cadence is shaped from a top and bottom line perspective as the steepness of needed promotions to clear inventory is the biggest variable that we cited into the print given TGT had the most negative positioning in our coverage. Using 14x the low end of the range is where the stock closed yesterday. Bears have argued for 12x."
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Shares of Target closed at $98.12 yesterday.