Target’s Q2 Struggles Highlight Amazon, Walmart Competition - Target (NYSE:TGT)

Target Corp TGT shares tanked in early trading on Wednesday, after the company on Tuesday reported its second-quarter results.

TGT is feeling the pressure from bearish momentum. Check the full analysis here.

Here are some key analyst takeaways.

BofA Securities analyst Robert Ohmes maintained an Underperform rating and price target of $93.
JPMorgan analyst Christopher Horvers reiterated a Neutral rating on the stock.

Check out other analyst stock ratings.

BofA Securities: Target reported second-quarter adjusted earnings of $2.05 per share, in line with consensus estimates, Ohmes said in a note. Same-store sales contracted by 1.9%, better than Street expectations of a 3.2% decline, reflecting a 1.3% decline in traffic comp and 0.6% ticket declines, he added.

Gross margin contraction to 29% reflects "higher markdowns, purchase order cancellation costs and pressure from category mix," the analyst wrote. Target announced the departure of CEO Brian Cornell and that he would be replaced by current COO Michael Fiddelke, he further stated.

JPMorgan: Target reported mixed quarterly results but maintained its full-year guidance, Horvers said. The current Street expectations are at the low end of the guidance, "suggesting the potential for estimates to move higher post-earnings," he added.

The departure of the CEO signals that Target will remain a merchant in discretionary categories to differentiate itself from Amazon.com Inc AMZN and Walmart Inc WMT, the analyst stated. It also indicates that the company "is unlikely to go on a significant capex/spending spree to build out a fulfillment operation for its growing marketplace offering," he further wrote.

TGT Price Action: Shares of Target had declined by 7.72% to $97.25 at the time of publication on Wednesday.