Target’s (TGT.N), opens new tab appointment of company veteran Michael Fiddelke as CEO did little to enthuse Wall Street analysts as they were pinning their hopes on an outsider to put the struggling retailer back on track.
Shares of Target tumbled nearly 11% on Wednesday after the announcement. Fiddelke replaces Brian Cornell, who is set to retire as CEO later this year after nearly 10 years in the role.
“I know we’re not realizing our full potential right now and so I’m stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth,” Fiddelke said.
ere are some analyst reactions to Target’s long-planned CEO appointment:
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
“Although Michael Fiddelke is likely to be seen as a safe pair of hands, having already overseen a big efficiency drive, the appointment appears to have seriously underwhelmed investors. There may have been hopes that a successor from a rival in the market could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition.”
Michael Baker, DA Davidson analyst:
“Target went with an internal promotion as Brian Cornell officially announced long-expected retirement,” which was partly leading to the drop in its shares, said Baker.