The firm reiterated its "outperform" rating and reduced the price target to $69 from $70 for the American general merchandise store company.
BMO Capital cut annual EPS estimates to $3.16 from $3.17 for fiscal 2014, and to $3.85 from $3.87 for fiscal 2015.
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The firm also lowered annual cash flow per share (CFPS) estimates to $2.55 from $2.56 for fiscal 2014, and to $3.35 from $3.37 for fiscal 2015.
BMO said it made these reductions because industry trends point toward lower sales.
"Many of the challenges at Target have been self-inflicted and the changes that are needed to improve the company's disappointing results in the U.S. and Canada are straightforward and correctable over the next 12-24 months," said BMO Analyst Wayne Hood.
Shares of Target are down 0.36% to $61.37 in early market trading on Tuesday.
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 several positive factors, 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, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."