Barron's on Target (TGT): 'Patience is a Virtue'

Shares of Target (NYSE: TGT) are moving higher this morning following a bullish piece in Barron's published last night. The article argues that any patient investor, specifically, with a few years to wait, could see a solid return out of the retailer that combines "cheap" with "chic".

Barron's, of course, brings up Pershing's talented manager, Ackman, who currently owns about 9.7% of Target. The article mentions a recent quote Ackman gave in a letter to clients: "We will ultimately be successful in our investment in Target."

Further, Barron's likes that Target's management is attempting to manage costs through a number of initiatives. Target has recently shifted its advertising plan to emphasize value and has also said that it will be opening fair less new stores over the next several years. And with the stock now trading at around 12x forward earnings, Barron's notes that the stock is well below its historical average of 17x forward EPS.

The article does not come with somewhat of a disclaimer, however. Barron's points to Target's credit-card portfolio which continues to suffer amid large-scale delinquencies. One of the worst consumer environments in history could also certainly weigh further on shares of Target -- as Barron's put its -- "at least in the near term."

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