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The industry concerns surfaced as the second-largest U.S. discount retailer cut its first-quarter profit forecast Tuesday as cooler spring weather hurt sales of spring merchandise, a point noted last week by Hudson’s Bay Co.’s U.S. chain, Lord & Taylor. Minneapolis-based Target said adjusted profit in the current quarter will be less than the low end of its forecast range of US$1.10 to US$1.20.

While shoppers appreciate the higher quality assortment, especially in discretionary categories, the complaints on pricing were alarming

Canadians might have been frightened off by unrealistic expectations about Target’s pricing from the start given the differences between the Canadian and the U.S. markets, but Mr. Trussell, who rates the shares a buy with a price target of US$74, believes the company will overcome that hurdle over time.

It is Target’s own longer-term performance estimates for Canada that raised another analyst’s doubts, namely the mass merchant’s prediction of hitting US$6-billion in sales and US$720-million in operating earnings by 2017.

“We think the expansion is risky, as Target has little time to test its Canadian format,” Jason DeRise, analyst at UBS Investment Research, said in a research note.

Mr. DeRise, who rates the shares neutral with a price target of US$75, estimates 2013 sales of US$2-billion from the 124 stores Target will open across Canada, or US$265 per square foot. Target will likely make a good impression on consumers in its early years with competitive pricing and good service, he said, but he believes its expectations are ambitious.