On Thursday, JPMorgan downgraded Target’s stock from "overweight" to "neutral" as the shopping giant experiences its longest losing streak on its stock in 23 years.
According to MarketWatch, Target’s stock ended Wednesday’s session down 2.2 percent. This marks the ninth straight day of decline, and it is the company’s longest losing streak on its sock since an 11-day stretch in February of 2000.
Wednesday’s stock closing price also marked the lowest price since August 11, 2020.
In premarket trading on Thursday, Target shares fell an additional 1.7 percent. The stock has fallen 12.2 percent so far in 2023.
"We continue to believe that the consumer is broadly weakening while the share of wallet shift away from goods (51% of [Target’s] sales) is ongoing,” wrote JPMorgan analyst Christopher Horvers.
"While still positive on a [three-year] basis, [Target] has been giving back share on a [one-year] view and we believe this share loss could accelerate into back to school and linger into holiday given consumer pressures and recent company controversies," wrote Horvers. "This could turn [Target’s] traffic negative after an impressive run of 12 consecutive positive quarters."
Horvers also noted that the company could also feel the impact of student loan repayments at the end of August, writing, "[Target] over-indexes to the millennial customer and, should student loan payments come back on, the company is more exposed than others in our coverage."
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