Target shares are approaching a three-year low in the face of the boycott against the retailer. The stock has faced several downgrades amid controversy among consumers on the company’s pride merchandise.
A recent report commented that Target shares had declined nearly 3.1 percent last week. Over the month, the stock price has tanked roughly 18.5 percent, translating to almost $15 billion in market value that has been lost. The company’s total market capitalization now sits at $59.1 billion, a decline from $74 billion as of this past week.
The financial difficulties Target has endured since the fallout have equity analysts revising their opinions on the company. Citi stock analyst Paul Lejeuz recently downgraded the stock to a neutral position from a buy, citing concerns that Target’s competitor Walmart would take market share. Lejeuz noted, “We believe Walmart is likely to continue gaining market share, and Target’s high exposure to discretionary sales will not serve them well in the current macro backdrop.”
The analyst explained the decision to downgrade the stock, stating that Target shares had too much risk. “Despite the recent stock pressure, we cannot recommend investors buy the stock given these dynamics and now believe the risk, reward is more balanced, but risk is more to the downside near term,” he said. Lejeuz also pointed out that Target experienced a 13.9 percent decline in store traffic the last week of May, citing inflationary pressures on consumer spending.
Target has experienced a similar backlash to Bud Light after angering consumers with pride-themed clothing items and a “tuck-friendly” female swimsuit. The controversial swimsuit was designed with the option to “tuck” male genitalia, providing extra crotch coverage.
Furthermore, one of the designers for the pride-themed clothing items was exposed as a Satanist. Target partnered with U.K.-based clothing line, Abprallen to design the pride collection that would be sold in Target stores. However, consumers discovered some of the company’s items that displayed overtly Satanic phrases and imagery. The company also made very explicit posts on social media, conflating the LGBT community and Satanism.
For example, Abprallen sells a pin bearing a Baphomet goat’s head with the phrase “Satan respects pronouns” inscribed on the item. The company has also made blatant anti-Christian statements such as, “Satan loves you and respects who you are; you’re important and valuable in this world and you deserve to treat yourself with love and respect. LGBT+ people are so often referred to as being a product of Satan or going against God’s will, so fine. We’ll hang with Satan instead.”
Such actions on behalf of Target have angered consumers, who have called for boycotts against the retailer. This gave way to the new hit song “Boycott Target,” which has racked up millions of views on social media and taken the number one spot on iTunes. The song even got a shoutout from Rep. Marjorie Taylor Greene.
Elon Musk has also weighed in on Target, claiming it would be soon that shareholders took legal action against the retailer for destroying shareholder value. Musk said, “Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value.”
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