Target Corporation Stock Update

Investing.com — Target Corporation (NYSE:TGT) closed lower on Monday after Oppenheimer removed the discount retailer from its 'top picks' list, citing concerns over increased promotional activity to clear excess inventory.

Analysts at Oppenheimer noted significant apparel clearance inventory at Target, with markdowns reaching 30-70%, plus an additional 20% off on select items. As a result, they downgraded Target shares from 'top pick' status.

They also highlighted several factors contributing to softer results, including the recent rally in Target shares following the Q2 report, unfavorable weather, shifts in consumer spending toward essentials amid port strikes, and potential election-related uncertainties.

Oppenheimer’s recent visits to Target stores in Northern New Jersey revealed elevated clearance inventory and deep markdowns, consistent with findings from other regions such as the Midwest and Las Vegas.

Long-term, Oppenheimer maintains an outperform rating for the stock and plans to leverage any price weakness leading up to the retailer's quarterly results, expected around Nov. 20.

Target Corporation's shares closed 3.8% lower on Monday.