By Senad Karaahmetovic

Regardless of very weak outcomes reported by Goal (NYSE:) yesterday, which pressured shares to shut 25% decrease on the day, Raymond James analyst Bobby Griffin is telling purchasers to make use of the pullback to purchase shares.

“We proceed to be consumers on the pullback, and see Goal as a long-term winner in at present’s retail panorama and consider the corporate can maintain its current market share positive factors throughout a number of product classes resulting from its buyer loyalty (i.e., F1Q site visitors positive factors), robust model partnerships (AAPL, ULTA, LEVI and many others.), and rising non-public label penetration,” Griffin mentioned in a shopper notice.

The analyst reaffirmed a Robust Purchase ranking and minimize the value goal to $205.00 per share, down from $275.00. He admitted that Goal may have executed the higher.

“Admittedly, the quarter was not nicely managed by Goal, and we may have higher predicted a draw back state of affairs given the run in gas costs, however there are silver linings to contemplate, together with TGT’s comp gross sales beat on site visitors positive factors (whereas different retailers have been ticket pushed) and tight SG&A expense administration. In our historical past of following/finding out retail, value issues are usually simpler to right (admittedly not in a single day) than model loyalty or weak site visitors tendencies, and we consider the present gross revenue pressures are largely transitory and might be fastened,” the analyst added.

Goal inventory value closed at $161.61 yesterday.