All in Motion was launched just last year and is now one of 10 Target brands that generated $1 billion or more in sales in fiscal 2020.
Following the announcement, Stifel analyst Mark Astrachan raised his rating on the stock from Hold to Buy and boosted his price target from $200 to $225 – 17% higher than the price as of this writing.
Astrachan noted that Target’s same-day order fulfillment is also a strong point for the stock.
“We view the relative tendency of Target shoppers to be users of same-day fulfillment services positively for the retailer as indicative of both Target’s success in encouraging adoption of same-day services among existing customers and of the strength of the retailer’s omnichannel value proposition to potential customers,” Astrachan wrote in a note.
The Stifel analyst isn’t the only one bullish on Target shares. Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, said this week that the stock looks primed to continue to outperform.
“If you look at its growth through the pandemic, they’ve actually managed to put one foot in front of the other, so their growth throughout has been solid, but they’re actually one of the cheaper names in the segment,” Sanchez said. “I think that it’s an interesting look right now.”
Oppenheimer’s Ari Wald said the stock’s technical setup is looking strong as well.
“Target is an established momentum name here,” Wald, the firm’s head of technical analysis said. “It has worked, it is working, it’s leading, and, more importantly, based on our work, it should continue to work, based on a time momentum profile and bullish trend.”
While Wald anticipates upside ahead for the stock, he suggests investors wait a bit before buying in.
“In terms of levels, there is support at its 50-day [moving] average at $182 if you’re looking at a level to trade around,” Wald said. “But, looking ahead we expect a new high above $200, which was its prior peak based on that bullish trend. Stick with it.”
Target closed at $192.44 on Wednesday, just under 6% higher than the $182 level Wald is watching for.