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Target faces more headwinds, Bank of America slashes price target

Target shares have been hit with another demotion, this time from Bank of America, following several stock downgrades that have pushed share value to three-year low.

Target, which has been struggling with pushback over its Pride transgender items, is also dealing with an uptick in downgrades which have pushed the stock price to a three-year low. Shareholders were hit with another demotion from Bank of America on Wednesday. 

TARGET MARKET CAP LOSSES HIT $15.7 BILLION, SHARES APPROACH 52-WEEK LOW AMID WOKE BACKLASH

The bank lowered its price objective from $180 to $145 while saying the reduction is a response to weakened peer multiples, decelerating traffic and modest mobile app engagement.

Since mid-May when the controversy hit Target's market value, at one point, lost over $15 billion. As of Wednesday, it recovered slightly to $61 billion from the high of $74 billion last month. 

CONSUMERS 'CREEPED OUT' BY TARGET'S TUCK FRIENDLY SWIMWEAR

"Downside risks to our price objective are gross margin pressures from labor costs, investments and the rapid growth of the lower-margin e-commerce channel as well as aggressive competition from competitors," Bank of American analyst Robert Ohmes wrote in the report.

TARGET SHARES DOWNGRADED AGAIN ON SALES CONCERNS

Last week, Citi analyst Paul Lejuez lowered the stock to neutral from buy and pitted the troubled retailer against rival Walmart, which Lejuez said in a note would begin gobbling up market share.

Meanwhile, KeyBanc Capital Markets cut the retailer's shares on Monday June 5, to "sector weight" from "overweight" as the resumption of student loan payments stipulated by Congress' debt ceiling agreement posed a sizable headwind for the discretionary spending of shoppers.

AMAZON, TARGET MODIFY DELIVERIES IN AREAS WITH POOR AIR QUALITY

On June 1, JPMorgan Chase downgraded Target's stock, with analysts citing the possibility of a decline in sales due to consumers pulling back spending amid persistent inflation.

The retailer initially irked conservatives with Pride displays that featured items such as assorted children’s apparel and "tuck-friendly" women's swimsuits. The move sparked employee safety issues at select stores, as first reported by Fox News Digital. 

Additionally, some in the LGBTQ community also became outraged when the displays were dialed back ahead of Pride Month. 

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Fox News Digital's Brian Flood contributed to this report. 

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