Street View: Target’s future hinges on digital expansion and economic recovery

Target TGT.N slashed its annual sales forecast on Wednesday, after a surprisingly sharp fall in quarterly same-store sales, as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy.

Average recommendation of 39 brokerages is "buy", median PT is $105 - data compiled by LSEG

TARGET IN THE CROSSHAIRS

Bernstein ("underperform," PT: $80) says co needs to keep investing in pricing and growing e-commerce, both of which could present persistent margin headwinds

"We are not positive that new management will be able to turn around the business, given its structural challenges," adds Bernstein

J.P. Morgan ("neutral," PT: $109) believes co is still a relevant retailer, but stronger economic conditions are needed to boost consumer spending on goods

"We see continued pressure during shoulder periods (time between busy seasons)," adds JPM

Telsey Advisory Group ("market perform," PT: $110) says co has several long-term growth opportunities like private label products, its digital marketplace, and advertising through Roundel, but in the short term, visibility is clouded and execution needs to be more consistent

BMO ("market perform," PT: $95) says co's profit margins could stay under pressure in the second half due to tough inventory planning, and long-term, it may need to invest more in its supply chain