UPDATE: JP Morgan Lowers PT on Target to $55

JP Morgan has published a research report on Target

and has lowered the price target from $58 to $55 after the company reported lower-than-expected comps from its 4Q. In the report, JP Morgan writes, "As reported, comps rose 1.6%, lower than consensus of ~3.5%, while the two-year avg. decelerated to 3.7% vs. 1.3%. The underperformance in Nov-Dec highlights our ongoing concern about weakness in the core of the store (ex. grocery). In these months, the discretionary categories gain in mix placing increased reliance on the performance of apparel, home, and hardlines. Home has been the particular thorn and remained negative in December. Apparel was up LSD, a decent performance in spite of the weather. Finally, electronics was down after an up month in November. As we look ahead, TGT should see some relief in January given the weight of grocery marches higher. However, with P-Fresh and REDcard contributions peaking, the core weakness points to a decelerating comp trend in the coming year (or until the macro improves), in our view." JP Morgan maintains its Neutral rating on Target, which is currently trading up $0.74 from yesterday's $48.51 closing price.