Target initiated with an Outperform at Oppenheimer

Oppenheimer analyst Rupesh Parikh initiated coverage of Target with an Outperform rating and $190 price target. The analyst states that the stock underperformed in 2022, falling 36% vs. a 19% decline in the S&P 500, but there is potential for a strong multi-year profit recovery driven by gross margin expansion, management cost actions, and share gains. While some bumps along the way against seemingly aggressive Street forecasts for FY23 could be expected, Target is well positioned to continue capturing share, the firm tells investors in a research note.