Analysts on Wall Street Lower Ratings for These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.

05. Target Corporation (NYSE:TGT)

Price Reaction after the Downgrade: -2.85 (-2.23%)

On August 22, Daiwa Securities executed a significant adjustment in its assessment of Target Corporation (NYSE:TGT), a notable retail company. Previously maintaining an ‘Outperform’ rating for Target Corporation (NYSE:TGT), Daiwa Securities has opted to lower this rating to ‘Neutral’. The firm has substantially reduced its previously set price target for the stock, bringing it down from $163.00 to $134.00. These recommendation and price target changes directly respond to Target Corporation (NYSE:TGT) Q2 earnings announcement. Target Corporation (NYSE:TGT) Q2 earnings report revealed an EPS Normalized Actual of $1.80, surpassing expectations by $0.38. However, the company’s revenue for the same period stood at $24.77 billion, falling short of expectations by $458.66 million.

Daiwa Securities’ decision to downgrade Target’s rating and adjust its price target may have been influenced by the mixed results in the Q2 earnings report. While Target exceeded earnings per share estimates, the revenue figures missed expectations. Such a scenario could prompt a reassessment of the stock’s investment potential, reflecting concerns about the company’s revenue growth and overall market performance.

Smead Value Fund made the following comment about Target Corporation (NYSE:TGT) in its second quarter 2023 investor letter:

“Our biggest detractors were Target Corporation (NYSE:TGT), Warner Brothers (WBD), and Pfizer (PFE). Target was our worst performer in the quarter, primarily driven by customers and public reaction to in-store promotions for the month of June. We believe management has listened to its core customers, made the necessary changes, and avoided structural damage to the brand.”