International Strategy & Investment Group Maintains Buy Rating for Target

In a report published earlier today, International Strategy & Investment Group LLC maintained its Buy rating for Target Corporation

, but did not name a price target. ISI said in its report “1Q sales +6.1% were known. U.S. Retail EBIT was $0.02 of the beat, due to SG&A leverage improving margins 50bps to 7.3%, vs our +20bp gain forecast. A 2% traffic gain validates REDcard & PFresh initiatives, also evidenced by REDcard penetration hitting 11.6% of sales vs 7.6% a year ago. Bears will focus on fears that comp slippage to near 1% in April is the new trend, yet we believe the multiple reflects the risk, and that 3% is a reasonable 2Q expectation. Credit profits were $0.01 below expectations, but Canadian costs were $0.01 less.” Target Corporation closed yesterday at $55.00.