Target rose in premarket trading Wednesday after Cowen analysts said the retailer had strong momentum and the opportunity to gain market share selling toys and other children’s merchandise.
The analysts upgraded the shares to outperform from market perform and raised their price target 11 percent, to $100. Target rose a little more than 1 percent in premarket trading to above $86.
Target is poised to benefit from strong consumer sentiment, low unemployment and rising wages despite any effects of tariffs on apparel and footwear. Cowen’s Oliver Chen said in a research note on Wednesday that the retailer should be able to pass some of the costs on to customers.
Shares of Target are already up 31 percent this year through Tuesday. The company has been remodeling its stores and adding new private brands in women’s and children’s apparel and home goods. It is also rolling out curb-side pick up options and enabling employees to check out customers anywhere in the stores using handheld devices.
“More customers are going for a ‘Target Run’ as shoppers understand this can be ‘Done’ at a good value,” Chen wrote in a note on Wednesday. “Target is on a good journey to become and solidify a position as one of America’s easiest places to shop.”