03:00 PM EST, 11/21/2024 (MT Newswires) -- Target ( TGT ) is offering attractive risk-reward following a sharp pullback in its shares, UBS Securities said in a Wednesday note.

"We think the pullback makes TGT's risk-reward attractive," UBS said.

"The market is pricing in many more questions than answers about Target's ( TGT )

long-term positioning, strategy, and profitability profile," the report said. "These questions are fair. Yet, the stock's severe reaction seems overdone."

UBS said it was probably due in part to the recent memories of a tumultuous few years for the retailer.

"These questions have undermined the market's confidence in the company's path forward," the report said. It said Target ( TGT ) lowered its full year EPS outlook by about 8% at the mid-point, only 91 days after raising its EPS guidance.

UBS cut its price target for Target ( TGT ) to $170 from $200 while keeping its buy call.

Price: 120.91, Change: -0.81, Percent Change: -0.67