Target "sell," target price reduced

01.07.08 - Wall Street Strategies

NEW YORK, July 1 (newratings.com) - Analysts at Wall Street Strategies reiterate their "sell" rating on Target Corp (TGT). The target price has been reduced from $48 to $41.

In a research note published this morning, the analysts mention that the consensus earnings projections for 2Q, 3Q and 4Q for companies in the retail sector are likely to be revised downwards in the short term, in view of the product markdowns in the summer season. Target has experienced market share erosion in the current slowdown in the retail sector, the analysts add. The company?s current share price does not accurately reflect fundamental shifts, including stiff competition and rising sales of low-margin consumables, Wall Street Strategies says.