UPDATE: Target (TGT) PT Raised to $260 at BofA Securities Ahead of Analyst Day

BofA Securities analyst Robert Ohmes raised the price target on Target (NYSE: TGT) to $260.00 (from $225.00) ahead of the financial community meeting on 3/2.

The analyst reiterated the Buy rating, stating "We areraising our F4Q EPS to $2.50 (from $1.85 previously and vs. Street consensus of $2.44) following strong Holiday results with comps up 17.2% in Nov. & Dec. 2020 (driven by digital growth of +102% incl. Same-day services up +193%) and we expect stimulus and e-commerce momentum (see Internet/e-Commerce) to support January comps. We expect cost leverage from higher sales to offset COVID-19 related costs in F4Q (TGT announced an incremental $200mn investment in employee bonuses in January). Strong general merchandise trends, omni-channel engagement, and improved cost efficiencies should also position TGT favorably for 2021 despite tough comparisons.

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