He said the Canadian marketplace still represents a big opportunity for Target, but operations remai

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Target Corp. s decision to hold its bi-annual investor day in Toronto is a chance to assuage concerns about the U.S. retailing giant's disappointing debut north of the border earlier this year, but it won't likely get the languishing stock back on track, say analysts.
Mr. Horvers, who is one of 16 analysts covering the stock with a hold/neutral rating on the stock, identified a number of headwinds facing the company, including the potential lack of profitability for its Canadian operations.
"Bigger picture, we worry that the Tarjay brand is being impacted as consumers are pushed away by tight inventory levels, increased consumables mix, lower online capabilities, and the company's softer profile during the past few Christmas seasons," locations of enterprise rent a car he said. "Meanwhile, Target may have competitively drifted into Wal-Mart's wheelhouse locations of enterprise rent a car of grocery and price leadership."
Paul Trussell, analyst at Deutsche Bank, is also recommending investors stay on the sidelines. He has a hold rating and US$64 price target on the stock, citing weaker-than expected same store sales as a negative risk moving forward.
He said the Canadian marketplace still represents a big opportunity for Target, but operations remain meaningfully below original expectations due to a high amount of out-of-stock product, weakened customer service, and an unfavorable merchandise locations of enterprise rent a car mix relative to peers, as persistent price perception issues.