BMO Capital analysts reduced their price target for Target (NYSE:TGT) to $155 from $170 while maintaining a Market Perform rating, following the company’s reported Q1 earnings.

The analysts noted that while Target's first-quarter results met expectations, investor hopes for continued gross margin percentage improvement have diminished. The analysts also highlighted concerns about increasing market share losses in food and consumables, ongoing weakness in digital growth, and rising same-day competition from Amazon and Walmart. The analysts added that although achieving 6% EBIT margins remains a goal, the timeline for reaching this target may extend longer than anticipated. In this context, the stock is considered fairly valued.