All of Target’s 133 Canadian stores are set to close by April 12.MARK BLINCH
Inside the Market's roundup of some of today's key analyst actions. This file will be updated often during the trading day so check back for new details.
A broadening U.S. economic recovery works in Target Corp.'s (TGT-N) favour, said Bank of America in upgrading the stock today.
The retailer has exited Canada after reporting a string of losses on its operations north of the border to focus on turning around its U.S. business.
The stock has gained more than 10 per cent since Jan. 14, the day before the company announced it would be exiting the Canadian market.
"We believe Target will continue to see increased spending at its stores and online as average retail prices are also increasing as customers trade-up to more expensive items or were more willing to pay full price," said analyst Robert Ohmes. "We believe TGT's new initiatives are showing early positive results and should support acceleration in TGT's same-store sales and gross margin expansion through a favorable mix shift."
Management's willingness to spend $1-billion on omni-channel investments – that is, harmonizing the shopping experience between brick-and-mortar and online properties – this year will support continued sales growth, according to the analyst.
He also highlighted the recent launch of the Lilly Pulitzer collection as a source of positive momentum for the company.
Mr. Ohmes upgraded the stock to "buy" from "neutral" and increased his price target to $92 (U.S.) from $86. The average analyst price target is $81.
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In other analyst actions:
Amazon.com Inc. (AMZN-Q) was upgraded to "outperform" from "market perform" by Raymond James, to "overweight" from "neutral" at JPMorgan, and to "buy" from "neutral" at Janney Capital. Raymond James' 12-month target price is $485 (U.S.) per share while Janney Montgomery's price target is $488 per share.
AT&T Inc. (T-N) was raised to "outperform" from "neutral" at Macquarie. The 12-month target price is $37 (U.S.) per share.
Microsoft Corp. (MSFT-Q) was upgraded to "buy" from "neutral" at Nomura.
Best Buy Co. (BBY-N) was lowered to "neutral" from "overweight" at JPMorgan.
Analysts at UBS initiated coverage on Suncor Energy Inc. (SU-T;SU-N), Canadian Natural Resources Ltd. (CNQ-T;CNQ-N), Cenovus Energy Inc. (CVE-T;CVE-N), Crescent Point Energy Corp. (CPG-T;CPG-N), and Encana Corp. (ECA-T;ECA-N) with "buy" ratings.
Spectra7 Microsystems Inc. (SEV-X) was rated new "buy" at M Partners. The 12-month target price is $1.20 (Canadian) per share.
U308 Corp. (UWE-T) was raised to "buy" from "neutral" at Dundee Securities.
Exco Technologies Ltd. (XTC-T) was raised to "top pick" from "strong buy" at Industrial Alliance. The 12-month target price is $20 (Canadian) per share.
TransForce Inc. (TFI-T) was raised to "market perform" from "underperform" at BMO Capital Markets. The 12- month target price is $28 (Canadian) per share.
Toromont Industries Ltd. (TIH-T) was downgraded to "market perform" from "outperform" at Raymond James. The 12-month target price is $34.25 (Canadian) per share.
Just Energy Group Inc. (JE-T;JE-N) was raised to "outperform" from "sector perform" at RBC Capital. The 12-month target price is $7.50 (Canadian) per share.
Juniper Networks Inc. (JNPR-N) was raised to "outperform" from "sector perform" at RBC Capital. The 12-month target price is $29 (U.S.) per share.
West Fraser Timber Co. Ltd. (WFT-T) was raised to "buy" from "hold" at TD Securities. The 12-month target price is $74 (Canadian) per share.
NextEra Energy Inc. (NEE-N) was rated new "buy" at Mizuho Securities USA. The 12-month target price is $125 (U.S.) per share.
NextEra Energy Partners LP (NEP-N) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $56 (U.S.) per share.
Nike Inc. (NKE-N) was downgraded to "hold" from "overweight" at HSBC. The target price is $104 (U.S.) per share.
Proto Labs Inc. (PRLB-N) was downgraded to "hold" from "buy" at Craig-Hallum. The 12-month target price is $74.00 per share. The company was also downgraded to "neutral" from "overweight" at Piper Jaffray with a target price of $73 (U.S.) per share.
With files from Bloomberg News