Target Corp.’s stock was downgraded to neutral from buy Friday by Citi, which cited slowing traffic and a tough competitive landscape for the retail giant.

“After significant sales gains in 2020-2022, we believe 2023 is showing that sales have peaked and are likely to fall further, creating a ‘giveback’ situation,” wrote Citi analyst Paul Lejuez in a note released Friday.

The analyst also cited a “noteworthy deceleration” in Target’s TGT, -3.26% store traffic over the past two weeks.

Target Corp.’s stock fell 1.4% in premarket trades Friday, after ending Thursday’s session down 0.4%.

“Now that 2023 is shaping up as a down sales year (and we are taking our sales [estimates] down further), it raises the question of how far sales might fall,” Lejuez wrote, adding that Target has been Citi’s lowest-ranked buy-rated stock for some time. “We are concerned now more than ever, and we can no longer recommend that investors Buy [Target],” he added.