Target price target lowered to $120 from $160 at BMO Capital

BMO Capital lowered the firm’s price target (TGT) on Target to $120 from $160 and keeps a Market Perform rating on the shares. The company’s Q3 results were much weaker than the firm expected, the analyst tells investors in a research note. BMO notes that it had been cautious that lean inventories and channel mix tailwinds would eventually abate, but Target’s weaker comps suggest market share losses and the return of digital and supply chain margin pressure, while the growth in ship-to-home further validates the firm’s long-term supply chain-related concerns for Target. The firm is also cutting its FY25 EPS view on Target to $8.59 from $9.5 and its FY26 view to $9.11 from $10.30.