Bank of America downgraded the stock to ‘Underperform’ from ‘Neutral’ with a price target of $93 from $105.
Target Corp’s (TGT) retail user message count jumped over 500% in the last seven days on Stocktwits ahead of its second-quarter results next week, with investors and analysts looking for commentary regarding demand trends and digital sales.
Retail sentiment on Target remained unchanged in the ‘bullish’ territory, with chatter at ‘normal’ levels, according to data from Stocktwits.
Shares of Target fell marginally in early trading on Friday. Bank of America downgraded the stock to ‘Underperform’ from ‘Neutral’ with a price target of $93, down from $105, according to TheFly. Target is now underperforming Walmart (WMT) on a comparable sales compound annual growth rate versus 2019, and digital trends “look very challenged,” Bank of America noted.
The firm added that Target sees increasing longer-term sales and margin risks given slowing digital sales growth, a lack of scale in digital advertising, and third-party marketplace. This, along with elevated tariff, pricing, and merchandising headwinds, and increasing competitive threats from both Walmart and Amazon (AMZN), creates a challenging environment for Target, Bank of America said.
On Thursday, Target and Ulta announced that they have decided not to renew their partnership when the current agreement concludes in August 2026. Since the launch of the partnership in 2021, the companies have expanded access to prestige beauty and offered beauty customers the benefit of linking their Ulta Beauty Rewards and Target Circle accounts for added convenience and value.
A Stocktwits user expressed skepticism about the stock.
Target shares have lost 23% of their value so far this year and declined 28% in the last 12 months.
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