Oppenheimer adds Target to top pick status, removes Cost from list

After spending time visiting a number of food retailers/discounters and beauty players, Oppenheimer says it saw solid in-stock conditions and limited clearance inventory. The firm also sees continued aggressive promotional efforts by retailers, such as in the beauty category, to drive traffic and conversion. Oppenheimer has updated its mid/large cap top pick listing for 2024 to include Church & Dwight (CHD), Target (TGT), Ulta Beauty (ULTA), and Walmart (WMT). The firm is adding Target to top pick status as it sees a very attractive risk/reward scenario and the potential for positive comps later in 2024, and is removing Costco (COST) from the list due primarily to valuation.