UPDATE: Target (TGT) PT Lowered to $155 at Wells Fargo

(Updated - June 7, 2022 10:22 AM EDT)

Wells Fargo analyst Edward Kelly lowered the price target on Target (NYSE: TGT) to $155.00 (from $165.00) while maintaining a Equal Weight rating.

The analyst comments "TGT surprisingly cut its outlook again, only three weeks after reporting Q1 as the company continues to battle high inventory levels in the wake of rapidly shifting consumer demand. It's now seeking to aggressively right size its discretionary inventory position through additional markdowns, liquidations, and order cancellations. Management is also taking actions to add flexibility and speed to its overburdened supply chain, while pursuing aggressive actions to control costs. This update is in reaction to an even more conservative approach to the discretionary side of the business, which seems to suggest that trends deteriorated further since the Q1report.While management reiterated its sales guidance given strong consumable demand, it now expects the EBIT margin to fall to about 2% in Q2 and recover to 6% in the back half. We believe this implies EPS below $9 In 2022 versus prior implied guidance of around $11and an initial 2022 outlook dose to $15."

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