US discount food and merchandise retailer Target Inc (TGT US) missed earnings expectations badly in May leading to a crash style plunge in the stock, last night it downgraded again as consumers are already migrating away from discretionary items to the less profitable day to day required staples. The failure to execute well in the increasingly challenging conditions has seen analysts become nervous about the business but we believe TGT is in the correct space for this stage of the economic cycle and management simply needs to refocus to reinstall some decent value in the stock – still one worth watching.
MM likes TGT into weakness
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