Target's Margins Could Be Hit By Student Loan Payment Resumption, Says Analyst
Portfolio Pulse from Priya Nigam
Target Corp (NYSE:TGT) shares continue to decline due to customer backlash and social media boycott. KeyBanc Capital Markets analyst Bradley Thomas downgraded Target's rating, citing potential headwinds from the resumption of student loan payments after August 30, which could impact discretionary spending and delay the company's margin recovery.
June 05, 2023 | 8:30 pm
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Target's shares are declining due to customer backlash and a downgrade by KeyBanc Capital Markets analyst Bradley Thomas, who cites potential headwinds from the resumption of student loan payments.
The resumption of student loan payments after August 30 could impact discretionary spending, particularly for Target's core consumer demographic (younger, college-educated). This may delay the company's margin recovery and negatively affect its stock price in the short term.
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