10:42 AM EDT, 05/22/2025 (MT Newswires) -- Target ( TGT ) is facing a widening gap in positioning and capabilities from its large-cap, multi-category retailer rivals, Morgan Stanley said in a Thursday note.

According to the investment firm, Target ( TGT ) is pursuing the right initiatives but from "a position of relative disadvantage" versus larger e-commerce players, citing the company's "less competitive" pricing and weaker supply chain.

Morgan Stanley said ongoing headwind from consumer disaffection could lead to a decline of 3% to 4% in Target's ( TGT ) comparable sales in 2025, with share losses in its apparel and home furnishings categories to continue over the rest of the year.

Morgan Stanley lowered its price target on Target ( TGT ) to $112 from $160, with an overweight rating.

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