Target's (TGT) initiatives to improve aspects of its business should allow it to address the volatile demand trends in the past couple of years, UBS said in a Tuesday note.
To mitigate external headwinds such as unpredictable weather and episodic consumer demand for discretionary categories, it has been investing in several areas, UBS analysts said.
They pointed to its plan to reduce lead times in categories such as apparel, and shifting some of its exposure in home goods to its marketplace to avoid the clogging of its supply chain.
"These investments should allow TGT to address its volatility over time," the analysts said. "This should allow TGT to generate more consistent comps and improve its profitability.'
UBS cut its price target to $155 from $170 while keeping its buy rating.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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