Goldman Sachs analysts said in a note Thursday that historically, a pullback of this level for Target (NYSE:TGT) "would be considered a notable buying opportunity." The firm raised its price target on the stock to $185, up from $180, maintaining a Buy rating.
The stock has lost ~22% of its market cap since April 11 and is trading at a relative multiple not seen since Jun 2022, explained the analysts, who added that it has piqued the interest of many investors.
However, they note that "a still-tentative consumer coupled with a call for a boycott of the retailer given a decision surrounding a certain merchandise decision has made the name highly debatable."
"While we are lowering our Q2 estimates to reflect the likelihood of more challenged traffic, we reiterate our Buy rating on Target given we do not anticipate this to weigh on results for more than one quarter," they added.
"Further, although the consumer backdrop is still tentative, we think the stock trading at a ~25% discount to the market is more than pricing in a slower top line."