1426 ET - Retailers that face significant exposure to discretionary spending are risky bets right now, Baird analysts say in a research note, as their success is largely dependent on management's ability to navigate a complex environment. Target should benefit from its position in grocery, health and wellness, all of which are more resilient categories, the analysts note. However, "categories like home and apparel tend to play meaningful roles in attracting incremental trips/spend" and are more likely to be squeezed by a pullback in spending. On the retail front, Baird analysts say they prefer Walmart, Costco and BJ's, especially considering Target's spotty track record as of late. Baird downgrades Target to neutral and lowers the stock's price target 24%, to $110. (connor.hart@wsj.com)

(END) Dow Jones Newswires

April 08, 2025 14:27 ET (18:27 GMT)

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