Brian Sozzi, CEO and chief equities analyst at Belus Capital Advisors, has a dimmer outlook. He says Wall Street should be worried about Target's winter quarter and 2014 as a whole. He rates Target at "sell."
"I'm worried about January, February, March," he says. The security breach "erodes the Target brand promise."
"There's going to be a delay in January. People want to see if this grows any bigger," he says. "As a retailer you're given a lot of data. As a consumer you're trusting your name's not going to end up somewhat where it shouldn't be. We don't think twice about this stuff ... Now you are, and that's a big problem."
Target had already tempered quarterly expectations for the quarter that ends in January. The retailer forecast earnings of $1.26 a share, below analysts' expectations of $1.45 a share."The stock is still overvalued. The transactions are not there," Sozzi says, adding that Wall Street "could hear an earnings warning when they report in February." Written by Laurie Kulikowski in New York. Follow @LKulikowski
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