UPDATE: Target Downgraded to Neutral at JPMorgan, Cites Uncertainty on 2014 EPS Growth

Target TGT was cut from Overweight to Neutral by J.P. Morgan Thursday morning. Analyst Christopher Horvers maintains a $74 price target on shares of Target. Horvers cited growing concerns on EPS growth moving into 2014, a 2 percent payroll tax increase, and a shorter holiday season. Target's presence in Canada is likely to come under pressure in 2014 as other big retailers increase their stake in the country. Uncertainty on the EPS contribution from Canada is significant as Canadian sales represent the largest driver of expected earnings growth year over year, according to Horvers. Horver reduced his Q2 EPS estimate on TGT from $0.98 to $0.97, the FY2013 estimate by a penny to $4.35, and the FY2014 estimate $0.08 to $5.50. Shares of Target are trading down about three-quarters of a percent in pre-market action. The stock last traded at $71.15.