Target downgraded to "hold"

19.07.06 - A.G. Edwards & Sons

NEW YORK, July 19 (newratings.com) - Analysts at AG Edwards downgrade Target Corporation (TGT) from "buy" to "hold," while reducing their estimates for the company.

In a research note published yesterday, the analysts mention that the downgrade in rating reflects increased concerns surrounding the outlook for consumer spending and the company?s poor inventory turnover prospects. Target?s inventory turnover has declined from 6.4 to 5.7 over the past four years, the analysts say. The weakening housing market and higher oil and gas prices are expected to exert pressure on the company?s same-store sales going forward, AG Edwards adds. The EPS estimate for FY07 has been reduced from $3.10 to $3.06.