Target (NYSE:TGT) stock is in hot water on Friday after Citi analyst Paul Lejuez warned investors to stay away from the retailer.
With this news, the Citi analyst dropped his rating for TGT stock from “buy” to “neutral” while claiming sales have peaked. To put that rating in perspective, the analyst consensus rating for Target shares is a “moderate buy” based on 27 opinions.
In addition to this, Lejuez also cut his price target for TGT stock from $177 per share to $130 per share. That’s a potential 1% drop from the stock’s closing price on Thursday. It’s also well below the analyst consensus price target of $178.10 per share.
Why the Bearish Stance on TGT Stock?
According to the Citi analyst, Target is likely to suffer, as 2023 is going to be a year of declining sales. That means investors will risk seeing the stock drop throughout the year and won’t want to take a position in the company right now.
Here’s what Lejuez said about sales drops in a letter to clients obtained by CNBC:
“This is not a new concern […] It is the primary reason TGT has been our lowest ranked Buy-rated stock for some time, but we are concerned now more than ever, and we can no longer recommend that investors Buy TGT.”
TGT stock is down 1% as of Friday morning as around 2.5 million shares change hands. The company’s daily average trading volume is about 4.3 million shares.
Eagle-eyed investors will want to read more of the largest stock market stories today.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
