Target is Named “Best Idea” For Next Year By Cowen

Big-box retailer Target has been called the “best idea” for 2020 according to Cowen.

The firm says that digital business is overcoming the Amazon threat and Target is finally keeping up.

The firm named the retailer as a “best idea” for 2020, citing that Target is both “profitable” and “innovative.”

“We continue to foresee an environment of accelerating bifurcation in retail, with TGT well positioned as a long-term winner,” said Cowen retail analyst Oliver Chen in a note to clients on Wednesday.

Chen also considers Target as better positioned from a valuation perspective to Walmart with shares trading at a significant multiple discount. He notes that investors underappreciate Target’s position in the digital arena.

Recently Target delivered another quarter of higher sales in stores and online and raised its earnings guidance. Sales at stores open at least a year and online grew 4.5% during the retailer’s third quarter compared with 2018, while its income increased close to 15% for the same period.

“We continue to see a very healthy consumer environment,” said CEO Brian Cornell said last month.

Disclaimer: We have no position in Target Corporation (NYSE: TGT) and have not been compensated for this article.