Bank of America on Wednesday downgraded Target to a neutral rating from buy.
Shares of Target could be under stress as consumers pull back spending in discretionary categories amid historically high inflation, according to Bank of America. Bank of America on Wednesday downgraded Target to neutral from buy. The firm also slashed its price objective on the stock to $165 from $235. The new price target implies just 5.
The big-box giant three weeks ago reported weaker-than-expected quarterly results as the company said supply chain troubles, higher fuel costs and weaker sales of discretionary merchandise hurt performance. Shares of Target have suffered recently, down are down 30.7% in the past month and 32.6% lower this year. Target has a higher relative exposure to discretionary categories than other big-box peers.
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