Target Price Target Raised To $60 After Shipt Acquisition At Baird

Baird analyst Peter Benedict said he is encouraged by Target's (TGT) efforts to bolster its suite of fulfillment capabilities by acquiring same-day delivery platform operator Shipt.

While the $550M cash deal will likely equate to less buybacks, Target sees the deal being modestly accretive to FY18 EPS and he sees longer-term benefits to engagement and wallet share, Benedict tells investors.

He raised his price target on the stock to $60 from $55, but keeps a Neutral rating on the stock given his view that Target's "margin reset" will likely continue in FY18.

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