ClearBridge Investments expresses concerns about Target due to challenges from consumer spending shifts and tariffs

ClearBridge Investments released its second quarter 2025 investor letter, showing growth stocks rebounding from tariff uncertainty. The S&P 500 returned 10.9%, NASDAQ Composite soared 17.7%, and the Russell 1000 Growth Index rose 17.8%. The strategy underperformed its benchmark, with IT and communication services sectors contributing to performance while health care detracted.

In the investor letter, ClearBridge Large Cap Growth Strategy highlighted Target Corporation (NYSE:TGT). Target’s one-month return was 6.93%, with shares losing 28.55% over 52 weeks. On July 3, 2025, Target closed at $104.06 per share, with a market cap of $47.28 billion.

ClearBridge expressed concerns about Target Corporation in its letter, citing challenges from shifts in consumer spending and tariffs on imports from China. They exited their position in Target due to risks weighted to the downside, despite the company’s efforts to protect margins in a tough operating environment. Target Corporation (TGT) has no option but to lower prices, according to Jim Cramer. Target is not among the 30 most popular stocks among hedge funds, with 62 holding it at the end of the first quarter. While Target has investment potential, AI stocks are seen as more promising for higher returns in a shorter timeframe.

Read more at Yahoo Finance: Shift in Consumer Spending Challenged Target (TGT) in Q2