Target upgraded to Buy from Neutral at Citi

Citi upgraded Target to Buy from Neutral with an unchanged price target of $180. The analyst believes Target has emerged as “one of the winners within the retail landscape” with an opportunity to improve EBIT margin in the years to come. Following a “choppy” 2022 and 2023, the company is “on the right track” with inventory well-controlled, easier sales comparisons beginning in Q2 and conservative guidance, the analyst tells investors in a research note. Citi believes the market may have reacted too negatively to some retailers amid a recently more uncertain consumer environment, and is attracted to retailers “that have mindshare for value and idiosyncratic opportunities to improve margins.” It says Target checks both boxes.