) to neutral from buy, after the company's "very disappointing" sales update.
Analyst Patrick McKeever says that the company sees November same-store sales growing 3.5%, below its initial 4% to 6% guidance and his former 5% estimate. He bases his new estimate on what seems to be a sharp deceleration in the second half of the second week of November. He says it's hard to look through this surprising slip in momentum because, among other things, sales comparables are easier in November than in any other month of the fourth quarter. Target stock is up 13% year to date, trading at premium valuation. He cut his $1.06 fourth quarter earnings per share estimate to $1.02.