The firm said it reduced its rating on the consumer goods retail giant as it believes a shift in merchandise and supply chain management will add near-term risk.
BMO has an $85 price target on Target stock.
"Target announced Kathee Tesija, EVP and Chief Merchandising and Supply Chain Officer, will transition into an advisory role beginning July 6 and will remain in an advisory role for several months," BMO said in an analyst note.
"While we do not see the announcement as a disagreement over strategic direction, we do see it as creating near-term leadership uncertainty internally and externally at a time when the stock is trading near its 52- week and all-time high and are lowering our rating," the note continued.
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 some important positives, 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, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."