Target Is Off-Target, Says UBS

NEW YORK (TheStreet) -- Target's(TGT) image and numbers appear to be falling well short of targets -- or so says UBS, which downgraded the discounter on Wednesday to neutral from buy, due to "some long-term concerns over Target's perception amongst consumers."

UBS said that, according to its research, Target has lost 14% of its shoppers over the last several years and that 31% of those still shopping at the store are spending less.

While same-store sales may show some improvements in September, that will largely be due to the Labor Day shift. The stock could receive a boost as a result, UBS says, but these gains will most likely be fleeting.

And if Wal-Mart's(WMT) warning is any indication, Target's troubles will not subside any time soon. The behemoth retailer's chairman spoke with CEOs in Kuala Lumpur, Malaysia, and warned the economic recovery will be extremely slow, AP reported.

Shares of Target slipped 1% in pre-market trading to $47.27.

-- Reported by Jeanine Poggi in New York

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