Target Becomes Casualty in Price War
Stock quotes in this article:TGT
NEW YORK (TheStreet) -- Target(TGT) is off Goldman Sachs' conviction buy list.
The discounter was downgraded to neutral by the brokerage firm, which said aggressive promotions and competition with rivals like Wal-Mart Stores(WMT) could hurt its margins. Analyst Adrianne Shapira also said credit delinquencies are likely to edge higher given current trends, and that there is little upside to the fourth-quarter since the company is up against last year's excessive cost cuts, which it does not plan to repeat this year. On Tuesday, Target reported an 18% jump in third-quarter profit, but forecast a highly promotional holiday season. Far in advance of Black Friday, the traditional kick-off for holiday promotions, Target has been following the lead of rivals like Wal-Mart and Amazon(AMZN), cutting prices on DVDs, book and toys. -- Reported by Jeanine Poggi in New York Follow TheStreet.com on Twitter and become a fan on Facebook.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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