Jolt For Target Corporation (NYSE:TGT) Ahead Of Thanksgiving
The S&P 500 index tracked Target Corporation (NYSE:TGT) with a market cap of $40.44 billion would be hoping that its stores are able to benefit from the pickup in sales that the U.S consumers are expected to bring in the run up to and post thanksgiving holidays. Over the past few years, retailers in U.S have reported that on an average, close to 40% of their annual sales are being squeezed into the two months of November and December which is termed the holiday season.
Investors and Rating Agencies Concur
Both investors and trade analysts have indicated that U.S second largest discount retailer Target Corporation (NYSE:TGT) will struggle to retain market share and up its sales in the face of stiff and cut through competition from healthier traditional retailers like Wal-Mart and disruptive online players like eBay Inc (NASDAQ:EBAY) and Amazon.com, Inc. (NASDAQ:AMZN). At the browsers the stock has shed close to 4.15% in the past one week and has managed to post losses of 7.18% in the past 180 days.
Analyst World too seems to agree with the investor sentiment. On November 22, the stock of Target Corporation (NYSE:TGT) was downgraded by Bank of America. The stock has been clubbed with other underperformers. This has been done on the back of sustained downcast outlook that the management of Target has been forecasting with respect to margins and sales numbers through the significant holiday season sales. Bank of America has brought down the target price to $60 which translates to a 5.8% discount over its November 22 close price of $63.7 per share. At current valuations, the stock is trading 12.2% down from its 52 week high pricing.
Target Has Company
Other retailers which got downgraded along with Target Corporation (NYSE:TGT) ahead of the key week for holiday sales were that of Abercrombie & Fitch Co. (NYSE:ANF) and Dollar Tree, Inc. (NASDAQ:DLTR).