Target Lowered By Goldman Sachs, Morgan Stanley

In a note released Wednesday, Goldman Sachs downgraded Target TGTfrom Buy to Neutral, cutting the price target from $65 to $59.

The firm downgraded Target to better incorporate estimate cuts following Tuesday's second quarter pre-announcement, lack of catalysts and ecommerce devaluation of general merchandise retailers.

Morgan Stanley also came out and lowered EPS estimates for 2014 to $3.30 and for 2015 to $3.80, noting that Tuesday's pre-announcement was an indication that the environment is far more difficult than what was originally anticipated and that Target still has earnings choppiness and potential disappointments.

Morgan Stanley also stated that, "There are two key takeaways from TGT's Q2 preannouncement in our view. First, overall sales environment in the U.S. remains choppy with consumers still shopping cautiously. Second, Canada continues to be problematic. Lowering our PT to $58."

Shares of Target fell three percent Tuesday and are trading down nearly one percent in the pre-market.