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Target Downgraded On Eroding Footfall

Published 2021-12-17, 04:04 p/m
© Reuters.
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By Sam Boughedda

Investing.com — Target Corporation (NYSE:TGT)  stock dipped 0.7% after Gordon Haskett analyst Chuck Grom downgraded it Friday to hold from buy.

The analyst told investors in a research note that he has noticed footfall and digital traffic levels "erode at a rapid clip over the past 6-7 weeks." As a result, Grom lowered his price target to $250 from $310 on the shares. 

He said broadlines and hardlines group traffic has fallen by around 240 basis points. 

"In the near term, we are lowering our 4Q21 SSS estimate from +11.0% to +8.0% versus the company's HSD-LDD guide and the Street at +10.8%, with EPS moving lower from $2.80 to $2.48," the note said.

As a result of his analysis, Grom also downgraded Dicks Sporting Goods to hold from buy, explaining that it is prudent to de-risk long exposure.

Dick’s Sporting Goods Inc (NYSE:DKS), which was downgraded on Thursday, is currently up 4% heading into the close. 

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