JPMorgan Lowers Price Target Of Target, 'The Election Is The Only Obvious Culprit'

JPMorgan's Christopher Horvers reiterated Target Corporation TGT's Neutral rating while decreasing the price target from $87.00 to $78.00. The report came in after a large amount of volatility was reported in the retail sector and Target having missed earnings estimates on Wednesday.

"Target fanned the flames of consumer concern citing a slowdown and highly volatile post-Easter period while leaving open the door that weather remains a significant factor," Horvers said. In addition to weather, "consumers do appear to be in a malaise," largely due to uncertainty in the presidential election, claimed the JPMorgan analyst.

Related Link: Retail Pros Dissect Target's "Scary" Numbers

On the upside, the analyst estimated that Target can "catch up" to industry online penetration of ~9 percent from ~4 percent in the next two years resulting in higher growth.

Due to these concerns, JPMorgan lowered its earnings forecast for FY162Q to be in the company's guidance range of $1.00 to $1.20 EPS.