Analysts Cautious On Target With Release Of Subpar Q1 Results

Target TGT released first quarter results Wednesday; analyst responses came on Thursday. The general consensus from analysts has been concern with profitability and uncertainty regarding Canada.

Target reported EPS of $0.70 versus the $0.60-$0.75 estimate.

Nomura has a Neutral rating and a $62 price target on the stock. Analyst Robert Drbul believes that second quarter profitability for Target will be affected by "increased promotions in the US to drive traffic, as well as continued difficulties improving the profitability and driving sales in the Canada segment."

MKM Partners has a Neutral rating and a $59 price target on the stock. Analyst Patrick McKeever believes that weak first quarter results and an expectation that traffic will remain under pressure will keep Target from being able to drive up share prices. MKM lowered its 2015 EPS estimate from $5.28 to $4.55.

UBS has a Neutral rating and a $59 price target on the stock. Analyst Jason DeRise feels that Target's reduced guidance and troubles in Canada make for concern for the future. DeRise also sees that until Target finds a new CEO, its stock price will continue to fluctuate amid uncertainty.

Shares of Target are down 2.26 percent to $55.91 at the time of publication.