Target price target raised to $170 from $145 at BMO Capital

BMO Capital raised the firm’s price target on Target to $170 from $145 but keeps a Market Perform rating on the shares. The company reported a “meaningful” improvement in gross margins despite the significantly weaker comps, but while Target continues to expect a rebound to 6% EBIT margins, BMO “remains cautious” as top-line growth may be more costly than appreciated given earnings support from lean inventory, channel mix, and increased competition, the analyst tells investors in a research note.