From Yahoo Finance: 2025-05-26 16:00:00

Citi analyst Paul Lejuez lowered Target Corp.’s price target to $94 from $97, maintaining a Neutral rating. This came after weaker-than-expected fiscal Q1 2025 results and lowered guidance for the year, indicating ongoing weak sales trends. Jim Cramer highlighted Target as the “Most Problematic of Retailers.”

Target reported a drop in net sales to $23.8 billion, with a 3.8% decline in comparable sales in fiscal Q1 2025. Management now anticipates a low-single-digit sales decline for fiscal 2025, with a GAAP EPS of $8.00 to $10.00. The analyst noted concerns about gross margin pressure and inventory issues.

The analyst stated that Target’s gross margin pressure may persist into the second half of 2025 due to ongoing challenges. While acknowledging Target’s potential as an investment, the analyst believes other AI stocks offer greater return potential with less downside risk. Investors looking for promising AI stocks should explore alternatives.

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Read more: Citi Keeps Neutral Stance on Target (TGT), Cuts PT