Target Corp. TGT, +0.28% was upgraded to outperform from market perform at Cowen as analysts see the company’s price value, tech-enabled pickup options, traffic numbers and private labels driving up the stock price. Cowen raised its price target to $100 from $90. Even with the volatility that will come from tariffs on clothing and shoes, analysts say Target “will be able to stem margin pressure by negotiating with vendors, suppliers, and pass on some of the increases to shoppers.” Target is also benefiting from low unemployment, rising wages and strong consumer confidence. And there’s room for innovation in technology and other areas of convenience. “[M]any of the fulfillment and omni-channel features, while impressive, are still in early innings with attractive innovation opportunities ahead,” analysts wrote in a note. “In our view there are additional opportunities in factors including: speed to customer, inventory rationalization and micro-shipments, augmented reality functionality, and in-store assistive robots.” Target shares are up 2.2% in Wednesday premarket trading, and up nearly 48% for the last year. The S&P 500 index SPX, +0.63% has gained 6.4% over the last 12 months.
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