Target still has room for improvement after gaining 20%, says Citi



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Customers leave a Target Corp. store in Colma, California

David Paul Morris | Bloomberg | Getty Images

Target stocks closed Wednesday trading day up more than 20% after the retailer announced impressive earnings growth and a surge in traffic that exceeded analysts' expectations. And at least one analyst thinks that there is even more room to run.

"Even if it is painful to upgrade a stock after such a decision, we want to take advantage of the next 20%, which we believe will be achieved if the company continues to prove to the market that it is a winner in this retail landscape, "Citi analyst Paul Lejuez said Thursday in a note to customers.

Citi raised its price target from $ 80 to $ 103, and took the company to the "Buy" rating of "Neutral". The stock closed Wednesday at $ 103 and climbed to about 1.5% in pre – market trading on Thursday morning.

Lejuez said Target's quarterly results this week show that its "investments are paying off". He added that private brands and real estate located away from shopping malls make it an attractive name in the retail business.

Target is also well positioned to continue taking market share from bankrupt and bankrupt retailers such as Toys R Us and Gymboree, he said.

"Given the wide range of categories in which Target has a strong mentality, they are also well positioned to take the share of other retailers closing beyond department stores," said Lejuez.

Target shares are up more than 55% this year.

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