Target slips after BofA downgrades stock on tariff challenges

** Shares of big box retailer Target TGT.N down 1.5% at $102.62

** Brokerage BofA downgrades stock to "underperform" from "neutral", cuts PT to $93 from $105

** Says TGT's higher import exposure at ~50% of cost of goods sold vs Walmart's WMT.N ~33% implies a need to raise average prices at almost double the rate of WMT to mitigate tariffs

** Projects ~8% average price increase for Target to fully offset tariff hit in FY27, compared to an expected 4% to 5% for Walmart

** Also sees increasing longer-term sales and margin risks for co given slowing digital sales growth and increasing competition from Walmart and Amazon AMZN.N

** But recent merchandising leadership and partnership changes could exacerbate risks in the current dynamic and challenging sourcing environment - brokerage

** Average rating of 38 brokerages is "hold" with a median PT of $103.50 - data compiled by LSEG

** Up to last close, stock has fallen 24% YTD