KeyBanc thinks the resumption of student loan payments in the third quarter will reduce Target’s profit margins. The company downgraded its Target on Sunday to an industry weighting from overweight. Target’s stock is down nearly 11 percent since the start of the year and more than 19 percent in the past three months. The company’s latest quarterly results show that Target has struggled to grow sales year over year. The executives also signaled that sales in the coming quarters will remain low. The mountain target TGT YTD has been hit by concerns about waning consumers so be cautious about overspending. And analyst Bradley Thomas says a more cautious, budget-conscious consumer coupled with macro headwinds will hamper Target’s long-term recovery — especially as loan payments students continue at the end of the year. “Given the recent stock sell-off, we believe NT [near-term] The downside could be limited, but we see the growing risk of student loan payments as likely to push the profit recovery story for at least another year, thus forcing us to downgrade. The earnings call could be a strong sign that the company will struggle to recover as well as its peers in the consumer sector.” headwinds continue to intensify for the broader retail environment,” he said. — CNBC’s Michael Bloom contributed to this report.