Target (TGT) is on its longest losing streak in 23 years, with JPMorgan downgrading the stock from overweight to neutral Thursday, partially due to customers’ intense backlash against its Pride collection.
The stock ended Wednesday down to $130.93 a share, its ninth straight decline, Marketwatch reports. This is the stock’s longest losing streak since an 11-day period that ended Feb. 24, 2000.
Wednesday’s close is also TGT’s lowest price since Aug. 11, 2020. Year-to-date, the stock is down 12.2%, whereas the S&P 500 is up 8.9%.
Since Target debuted this year's controversial LGBTQ+ clothing line on May 9 ahead of June’s Pride month, Target’s market capitalization has declined by $11.75 billion, from $72.47 billion to $60.72 billion. The stock is down 15.91% in this time, from $155.70 on May 9.
“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, TGT 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,” Horvers wrote.
“This could turn TGT’s traffic negative after an impressive run of 12 consecutive positive quarters,” he said.
In recent weeks, consumers have stridently disapproved of a line of Pride bathing suits for transgender females that Target has displayed prominently in its stores. Target has since removed some of its Pride goods.
The JPMorgan analyst said Target could face additional headwinds when the pause in student loan repayments ends on Aug. 30, part of the deal to raise the debt limit.
Target “over-indexes to the Millennial customer and, should student loan payments come back on, the company is more exposed than others in our covers,” Horvers said.
Among 35 analysts FactSet surveys, 15 have a hold rating on Target and 20 have an overweight or buy rating.
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