Target (TGT) Quietly Launched a New Loyalty Program - Analyst

Target (NYSE: TGT) has quietly launched a new loyalty program called REDperks, according to Piper Jaffray analyst Sean Naughton.

The program is available by invitation only in select markets and offers an additional 5% off an entire day of shopping at Target for each $500 in spending, the analyst conveys.

Naughton believes the new program will be on top of the 5% discount when using a REDcard, but cannot be stacked with the Pharmacy Rewards program.

"We believe this loyalty program is a good addition to Target's offering as it can help reach less frequent guests who are not interested in opening a REDcard account or who are unbanked," he said. "We expect the company may talk about new efforts to drive store traffic, REDperks being one, when Q4 results are released next week and at the analyst day the following week in New York."

The firm maintained an Overweight rating and price target of $85 on TGT.

For an analyst ratings summary and ratings history on Target click here. For more ratings news on Target click here.

Shares of Target closed at $76.12 yesterday.

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