Strength of target action in pandemic era will continue as economy reopens, says UBS in upgrade
Customers at a Target store in New York City.
Scott Mlyn | CNBC
Investors should feel comfortable betting on TargetThe success of continues even as the economy reopens, according to UBS.
The company continued to grow its margins year-over-year in the first fiscal quarter, and its stock has gained 30% year-to-date. However, stocks are trading below 10% of analysts’ average price target, according to FactSet, implying that some on Wall Street are skeptical about continuing the race.
UBS analyst Michael Lasser upgraded the action to buy from neutral, saying in a note to clients that Target’s profitability is expected to remain strong even if the pandemic ends and the expected returns and benefits of the programs. stimulus decrease.