Target Corporation (TGT): “They Have No Choice. They Have To Cut Price,” Believes Jim Cramer

Insider Monkey
05-29

We recently published a list of Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks. In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against other stocks that Jim Cramer discusses.

A woman purchasing groceries at a Target store, with a cart full of products.

Target Corporation (NYSE:TGT) is another commonly discussed retail stock on Cramer’s morning show. Throughout the course of this year, the CNBC TV host has maintained that Target Corporation (NYSE:TGT) will struggle to compete with retail giant Walmart on the cost front. He also believes that not only does the firm have a significant portion of its products come through imports but also that Target Corporation (NYSE:TGT) needs to lower prices to 2018 levels. Here are Cramer’s latest thoughts about Target Corporation (NYSE:TGT) which followed the firm’s latest earnings report:

“Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let’s just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he’s just insisting that it’s not really, it’s not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I’m gonna come back. . .is scale.

“They did buy back a lot of stock. . . they must have had much more faith than the street. You know they bought back 2.2 million shares at a 114 dollars a share. I would have never done that. Plays down any backlash from DEI. But the most important thing here, Carl, I just find is, this has been a, become a typical thing that Target has become a serial disappointer.

“I am questioning, how well it’s doing. It’s not big enough. They’re not opening a lot of stores, it’s part of urban strategy that seemed just okay. There were issues even, you know, off of George Floyd, but they recovered very quickly. . . .But I think that that’s more, if you might show some others, yeah Walmart’s really good too, TJX is really good too.

“Go look at the prices, when I. . .would walk with Brian through a Target store, I said this is too high, this is too high, this one’s too high. Where is the 2019? How about 2019 prices? I know that right now Walmart’s got some 2019 prices.

“Look, when you put up a chart of Dollar Tree, Dollar General, not Dollar Tree. Dollar General, I think that if Target can really lower price, you can have a kind of a conversion of. . .

“I’ve gone over this with Brian many times. I think everyone loves to go to Target. They’ve got those great brands that are their own. They have to cut price, cut price, cut price. They have no choice. They have to cut price.

Overall, TGT ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TGT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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