Target (TGT) Stock Down, Nomura Lowers Price Target

NEW YORK (TheStreet) -- Shares of Target (TGT) - Get Report are down 0.51% to $67.64 early Thursday morning as Nomura decreased its price target on the stock to $75 from $85 and maintained its "neutral" rating.

The lowered price target is a result of weak 2016 first quarter revenue results and comparable store sales, the firm stated.

"The disappointing top-line result was attributed to softness post-Easter, affected by weather (particularly in the Northeast), a reset of the center-store grocery offering and declines in electronics and entertainment," Nomura analysts said in an investor note.

Yesterday, Target reported first quarter revenue of $16.2 billion, down from the previous year's first quarter revenue of $16.3 billion. Comparable store sales rose 1.2%, but missed Wall Street estimates of a 1.6% growth.

The Minneapolis-based merchandise and food retail giant reported earnings of $1.29 per share, which was higher than analyst's expectations of $1.20 per share.

Large retail stores such as Target and Macy's (M) have been reporting poor store sales due to competition from online-shopping giant Amazon.com (AMZN).

As a result, Barclays reduced its price target on Target stock to $65 from $70, reiterating its "underweight" rating, BMO Capital Markets decreased its price target to $76 from $89 and maintained its "market perform" rating and Jefferies lowered its price target to $72 from $78 and reiterated its "hold" rating.

Separately, TheStreet Ratings rated Target as a "buy" with a score of A-.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.

Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that are rated.

The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and compelling growth in net income.

TheStreet Ratings feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: TGT