Target's Margins Could Be Hit By Student Loan Payment Resumption, Says Analyst
Target's Margins Could Be Hit By Student Loan Payment Resumption, Says Analyst
Shares of Target Corp (NYSE:TGT) tanked in early trading on Monday, continuing their downward trajectory after a customer backlash and calls for a social media boycott.
While Target's long-term margin recovery story remains intact, the company could face increasing consumer headwinds over the next 12 to 18 months, including student loan payments, according to KeyBanc Capital Markets.
The Target Analyst: Bradley Thomas downgraded the rating for Target from Overweight to Sector Weight.
The Target Thesis: The approval to raise the government's debt ceiling is accompanied by a policy change to resume student loan payments after Aug. 30, which could be a "sizable headwind" for discretionary spending, "particularly for the 2023 back-to-school and Holiday Season," Thomas said in the downgrade note.
Check out other analyst stock ratings.
"Ultimately, we believe this presents TGT with additional downside risk due to the retailer's elevated discretionary sales mix (51.2% in 2022) and core consumer demographic (younger, college educated)," the analyst wrote.
The consensus estimates appear "too high" in view of these emerging headwinds, Thomas stated. "Given the recent selloff in shares, we believe NT downside may be limited, but we see the growing risk of student loan payments as likely pushing out the margin recovery story at least another year," he added.
TGT Price Action: Shares of Target had declined by 1.97% to $130.60 at the time of publishing Monday.
Photo: Shutterstock
Shares of Target Corp (NYSE:TGT) tanked in early trading on Monday, continuing their downward trajectory after a customer backlash and calls for a social media boycott.
的股份 塔吉特公司 紐約證券交易所代碼：TGT）在週一早盤交易中暴跌，在客戶強烈反對並呼籲抵制社交媒體之後，繼續下跌趨勢。
While Target's long-term margin recovery story remains intact, the company could face increasing consumer headwinds over the next 12 to 18 months, including student loan payments, according to KeyBanc Capital Markets.
根據KeyBanc Capital Markets的數據，儘管塔吉特的長期利潤率復甦故事完好無損，但該公司在未來12至18個月內可能面臨越來越多的消費者阻力，包括學生貸款的支付。
The Target Analyst: Bradley Thomas downgraded the rating for Target from Overweight to Sector Weight.
目標分析師： 布拉德利·托馬斯將塔吉特的評級從增持下調至行業權重。
The Target Thesis: The approval to raise the government's debt ceiling is accompanied by a policy change to resume student loan payments after Aug. 30, which could be a "sizable headwind" for discretionary spending, "particularly for the 2023 back-to-school and Holiday Season," Thomas said in the downgrade note.
目標論文： 托馬斯在降級報告中說，在批准提高政府債務上限的同時，還修改了在8月30日之後恢復學生貸款還款的政策，這對於可自由支配支出來說可能是一個 “相當大的阻力”，“尤其是在2023年返校和假日季”。
Check out other analyst stock ratings.
查看其他分析師股票評級。
"Ultimately, we believe this presents TGT with additional downside risk due to the retailer's elevated discretionary sales mix (51.2% in 2022) and core consumer demographic (younger, college educated)," the analyst wrote.
這位分析師寫道：“歸根結底，我們認爲這給TGT帶來了額外的下行風險，這是由於零售商的全權銷售結構（2022年爲51.2％）和核心消費者羣體（年輕，受過大學教育）的增加。”
The consensus estimates appear "too high" in view of these emerging headwinds, Thomas stated. "Given the recent selloff in shares, we believe NT downside may be limited, but we see the growing risk of student loan payments as likely pushing out the margin recovery story at least another year," he added.
托馬斯說，鑑於這些新出現的不利因素，共識估計似乎 “過高”。他補充說：“鑑於最近股票的拋售，我們認爲新臺幣的下行空間可能有限，但我們認爲學生貸款還款風險的增加可能至少將利潤率復甦的故事推遲一年。”
TGT Price Action: Shares of Target had declined by 1.97% to $130.60 at the time of publishing Monday.
TGT 價格走勢： 週一發佈時，塔吉特的股價下跌了1.97％，至130.60美元。
Photo: Shutterstock
照片：Shutterstock
譯文內容由第三人軟體翻譯。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能，分享給你的好友吧