Target faces more bad news due to consumer outrage and boycott.

Target’s Stock Takes Another Hit Amid Boycott and Consumer Headwinds

Target’s image and sales have been on the decline, and the retailer received another blow on Monday. The company has been facing a conservative-led boycott due to its promotion of “pride” month items and in-store displays. Target has since pulled back some displays and products, leading to criticism from LGBT advocates. As of mid-May, Target announced that its first-quarter sales were essentially flat. Now, Target Corp.’s stock has been downgraded by KeyBanc Capital Markets, with the company listed at sector weight, a reduction from its previous rating of overweight.

Target faces continued stock losses and a downgrade from KeyBanc Capital Markets as Congress’ debt ceiling agreement poses a headwind for discretionary spending, with students resuming loan payments. After already being downgraded by JP Morgan last week,… https://t.co/mBFUPBbtbU

— AM1_NEWS (@am1_news) June 5, 2023

KeyBanc analyst Bradley Thomas wrote that “while we still believe in the long-term margin recovery story, we downgrade TGT to SW given increasing consumer headwinds over the next 12-18 months.” Thomas cited the resumption of student loan payments as a “sizeable” headwind for consumer spending. Target’s stock price has fallen 20 percent this quarter, with shares falling another 2.03 percent on Monday.

Target shares plunge 2% as market cap down over $13 billion amid Pride backlash https://t.co/FRieNeIPEV

— Terri Green (@TerriGreenUSA) June 5, 2023

Former Target Vice Chairman Gerald Storch said that the boycott tipped Target over the edge when it was already struggling. Storch noted that Target’s decline in stock began on May 18th, the day Walmart reported a seven percent gain in comp store sales. Target had reported flat sales, leading to an unfavorable comparison. While the boycott is part of the problem, Storch said Target’s issues run deeper than “pride” month.

It remains to be seen whether Target can recover from its recent setbacks.

Key Takeaways:

• Target’s stock has been downgraded by KeyBanc Capital Markets, with the company listed at sector weight, a reduction from its previous rating of overweight.
• Increasing consumer headwinds over the next 12-18 months, including the resumption of student loan payments, are cited as reasons for the downgrade.
• Target’s stock price has fallen 20 percent this quarter, with shares falling another 2.03 percent on Monday.
• Former Target Vice Chairman Gerald Storch said that the boycott tipped Target over the edge when it was already struggling, but noted that Target’s issues run deeper than “pride” month.

The post Target Slammed with More Bad News After Consumer Outrage, Boycott appeared first on The Western Journal.