UPDATE 2-Pershing's revised Target proposal out Wednesday

(Adds details, Target stock price)

NEW YORK, Nov 18 (Reuters) - Target Corp (TGT.N) shareholder Pershing Square Capital Management will present on Wednesday a revised proposal to boost Target's long-term value and address concerns raised about an earlier version calling on the retailer to spin off the land under its stores.

But a Target spokeswoman said the discount retailer is still reviewing the Pershing proposal and has not yet made a decision on it.

Target shares were down 4.8 percent at $29.99 in late afternoon trading on the New York Stock Exchange.

Nearly three weeks ago, hedge fund manager William Ackman, whose Pershing Square Capital Management owns roughly 10 percent of Target's stock, called on Target to spin off to shareholders a real estate investment trust that would own the land beneath its stores.

Ackman said the deal would unlock the value of Target's real estate and boost its sagging stock price.

But the discount retailer said the proposal might make the company vulnerable to a credit downgrade. That, in turn, would make it even tougher to borrow money during the current financial crisis. Management also expressed concern about other issues, including reduced financial flexibility.

It now appears Ackman has made some adjustments to his original plan in response to Target's concerns.

"The revised transaction addresses each of the concerns raised by the company ... and incorporates feedback from shareholders, bondholders, and other market participants," Pershing said in a statement.

Target's stock has dropped this year as the economic downturn curbs shoppers' ability to splurge on its wares and make payments on its credit cards. On Monday, it reported a drop of nearly 24 percent in quarterly profit and said it will conserve cash to protect its liquidity and debt rating.

Ackman has been pushing Target to make changes to its business to rejuvenate its stock price and earlier this year the retailer sold a stake in its credit card business to JPMorgan Chase.

But after Ackman outlined his REIT proposal in October, many Wall Street analysts expressed doubt Target would pursue a deal at this point.

"We are not surprised that Pershing Square is interested in structuring a transaction to unlock shareholder value," wrote Citigroup analyst Deborah Weinswig in a note on Oct. 28.

"However, at this time, we do not believe that Target's management is prepared to do a deal. We believe that management is committed to maintaining its current credit ratings and would not structure a deal that would jeopardize those ratings." (Reporting by Nicole Maestri and Svea Herbst-Bayliss, editing by Richard Chang and Andre Grenon)