Target "neutral," target price raised

27.02.08 - UBS

NEW YORK, February 27 (newratings.com) - Analysts at UBS maintain their "neutral" rating on Target Corp (TGT). The target price has been raised from $53 to $58.

In a research note published this morning, the analysts mention that the company has posted its 4Q EPS marginally ahead of the reduced expectations. While Target?s margins contracted due to adverse product mix, the company efficiently managed its expenses during the quarter, the analysts say. Economic uncertainties persist and there is limited visibility into the impact on the company?s discretionary retail sales and credit exposure going forward, UBS adds. The upward revision in the target price reflects a shift in the base year, the analysts state.