Target Corporation (NYSE:TGT) Earns A UBS Red Flag – DE, LLY


Dallas, Texas 11/08/2013 (Financialstrend) – The S&P 500 index tracked Target Corporation (NYSE:TGT) stock has got a rude jolt from analysts at UBS. The firm has picked out few heavy weight stocks and has critically pointed out the likely reasons why investors should re-evaluate their investments in the stock.  The large caps which have made it to the list include large caps like “Apache Corp. (NYSE:APA), Deere & Company (NYSE:DE), DirecTV (NYSE:DTV), Emerson Electric Co. (NYSE:EMR), Eli Lilly & Co. (NYSE:LLY), Lockheed Martin Corp. (NYSE:LMT).

Investors in the Target Corporation (NYSE:TGT) stock should take note that the $41.15 billion market capped firm to has made it to the at risk list of UBS. The analysts at the rating firm have deemed that the retailer would be facing huge completion from its peers during the holiday season as customers look for basement level bargains. This the analysts feel is going to put lot more pressure on the firm to offer deeper discounts which might lead to weakness in their earnings. The rating firm also opines that Target has been let down by its online sales vertical and it needs to augment its online sales effort drastically to avoid losing customers to the likes of eBay on one hand and the likes of traditional retailers like Wal-Mart on the other. Investors in the stock have been advised to look out for price target of $70 and have been to asked to reconsider their position in the stock at this stage.

The share price of the stock is hovering around the $64.82 mark when trading was suspended for the day on November 7. At these price points, the stock is 11% below its 52 week high benchmark and investors would be hoping that stock would manage to post greater gains than the 5.64% that stock has yielded over the past 12 months.