UPDATE: JP Morgan Upgrades Target to Overweight on Near-Term Catalysts

JP Morgan raised its rating on Target TGT from Neutral to Overweight and increased its price target from $66 to $76. JP Morgan commented, "We are upgrading TGT to Overweight as we believe the stock is positioned for outperformance in 2013 based on accelerating earnings growth over the next two years against reasonable valuation with specific catalysts. We cite the following reasons: (1) easy Holiday comparisons with specific merchandising catalysts (Neiman, Nate, and Threshold); (2) accelerating sales, earnings, cash flow, and buyback growth in 2013-2014 related to Canada/leverage; (3) a derivative housing play with nearly 20% of sales in this category; and (4) valuation levels that support reasonable downside protection." Target closed at $62.71 on Friday.