Target downgraded to Neutral on business uncertainty at Daiwa

Daiwa downgraded Target (TGT) to Neutral from Outperform with a price target of $130, down from $170. Both the company’s sales and profit were below expectations in Q3, and the annual outlook was lowered, the analyst tells investors in a research note. The firm believes Target’s uncertainty persists as the improvement in sales of discretionary products with high margins is postponed. The stock price does not feel overvalued or cheap when considering the uncertainty of the results, contends Daiwa.