P-Fresh To Prop Up Target (TGT)

Analysts at PiperJaffray have maintained an Overweight rating for Target Corporation (NYSE: TGT) with a price target of $58.

Target has recently announced the concept of P-Fresh, which will enable the company to include 55 sides of food in a typical prototype store. The previous prototype called for 34 sides of food. The remodeling will see Target incurring a capex of $1 billion and the initiative will enable it to cover approximately 90% of items in a typical grocery store visit.

The analysts believe that this low investment high impact model will pay off handsomely for Target as it continues to explore ways to improve productivity of its current real estate.
Target is expected to expand further in U.S. urban markets. To allay investor apprehensions of market saturation in its home market, Target may foray internationally into neighboring markets like Canada, Mexico and Latin America.