Will This Rating Affect Target (TGT) Today? (Update)

Update (9:45 a.m.): Updated with Monday market open information.

NEW YORK (TheStreet) -- Sterne Agee initiated coverage on Target  (TGT) with a "neutral" rating and set a $54 target price. The firm noted domestic business has declining traffic trends.

The team from Minneapolis has endured a rough year - soft U.S. SSS (worst comp since '09), significant Canadian mishaps, and finally a major credit card data breach announced just 6 days before Christmas '13," Sterne Agee wrote in a research note. "While Canada steals the headlines, Target's U.S. business is the bigger issue with an undifferentiated merchandise offering and declining traffic trends. We'll start Neutral with a $54 PT, awaiting a better entry point and/or a non-fundamental catalyst to ignite shares. Estimates: Q4 $0.81; '13 $3.16; '14 $3.80."

The stock was falling 0.89% to $55.72 shortly after the market opened on Monday.


Separately, TheStreet Ratings team rates TARGET CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TARGET CORP (TGT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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