BUZZ-Street View: Tough macro conditions to put Target on shaky ground

Reuters11-21

** Target forecast holiday-quarter comparable sales and profit below estimates on Wednesday as value-conscious consumers shopped for low-priced essentials at rival retailers including Walmart

** 19 brokerages rate the stock "buy" or higher, 19 "hold" and one "sell"; their median PT is $145 - LSEG data

PRESSURES PERSIST

** D.A.Davidson ("buy," PT: $150) says even with signs of improved confidence and consumer spending being a toss up, TGT is not as well-suited as other retailers due to co's skew towards non-essential goods

** Roth MKM ("neutral," PT: $131) says TGT faces largest potential macro headwinds with a possible consumer 'trade down' as there is a shift away from non-essential purchases

** TD Cowen ("hold," PT: $145) says TGT needs to address negative trends in home goods, clothing, and other hardline products

** "Building a bigger base of "need" orientated product, bolstering high-value private brands, and leveraging automation could be keys to lower volatility"

** Morgan Stanley ("overweight," PT $180) says the challenges aren't just macro consumer headwinds and that TGT also struggles to expand market share and establish itself as a go-to destination for non-essential goods

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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