Target may be struggling more than many observers realize and could be facing “a sustained period of comp and traffic weakness,” Wells Fargo analysts led by Edward Kelly warned in a Wednesday research note.
Although the analysts said Target “remains a long-term share gainer,” they downgraded its stock based on evidence of Q4 traffic declines, the “unique level of complexity” of its store-based fulfillment and signs that general merchandise demand more broadly has softened. They also cited a “growing lack of visibility on the margin recovery story,” with promotions likely to remain high and supply chain issues to continue.
Source: Retail Dive