Target price target lowered to $145 from $190 at Baird

Baird lowered the firm’s price target (TGT) on Target to $145 from $190 and keeps an Outperform rating on the shares. Wednesday’s selloff in Target shares feels overdone, the analyst says, noting that decelerating discretionary category trends, unexpected cost pressures, and the resulting rough 20% EPS miss were “unsettling.” While management needs to demonstrate an ability to manage the operating side of the business more effectively, some costs appear transitory, and discretionary spending will ebb and flow as it always has, the analyst tells investors in a research note. Trading at an unprecedented roughly 35% discount to the market on newly lowered numbers, the stock’s risk/reward leans favorable for investors able to look through the near-term uncertainty, the firm adds.