Citi Keeps Neutral Stance on Target (TGT), Cuts PT

On May 22, Citi analyst Paul Lejuez lowered the firm’s price target on Target Corp. (NYSE:TGT) to $94 from $97, keeping a Neutral rating on the shares.

The downgrade came in response to the company’s weaker-than-expected fiscal Q1 2025 results reported on May 21. Management lowered the company’s guidance for fiscal year 2025, which, according to the analyst, suggests that weak sales trends observed in Q1 are expected to continue.

Jim Cramer Notes Target Corporation (TGT)s the “Most Problematic of Retailers”

A woman purchasing groceries at a Target store, with a cart full of products.

Target Corp. (NYSE:TGT) reported net sales of $23.8 billion, compared with $24.5 billion in 2024. Comparable sales dropped 3.8% in fiscal Q1 2025, with a 5.7% decline in comparable store sales. Management now expects a low-single-digit decline in sales for fiscal 2025, along with a GAAP EPS of $8.00 to $10.00. Adjusted EPS is anticipated to be in the $7.00 to $9.00 range.

The analyst told investors in a research note that the lower fiscal 2025 guidance “seems to provide cushion” after a weak quarter, with higher-than-planned apparel and home inventories and a loss in market share in more than half of the company’s 35 categories. However, the firm believes the earnings guidance has not been “derisked.”

The analyst opined that Target’s (NYSE:TGT) gross margin pressure is likely to extend to H2 2025 since it is dealing with headwinds “that may not be quick to improve.”

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