Target downgraded to ?neutral? - update

23.07.08 - Credit Suisse

NEW YORK, July 23 (newratings.com) ? Analyst M Exstein of Credit Suisse downgrades Target Corporation (TGT) from "outperform" to "neutral," while reducing his estimates for the company. The target price has been reduced from $60 to $50.

In a research note published this morning, the analyst mentions that the downgrade in rating reflects the continued weakening of the company?s credit business. Target?s recent credit metrics reveal significant deterioration, with the delinquencies of 30 days or more reaching a new high of 6.6% of the end of period receivables. The company?s credit business is unlikely to stabilize in the near future, the analyst says. The EPS estimate for 2008 has been reduced from $3.45 to $3.30.