Piper Jaffrray Reiterates Overweight Rating on Target Corporation

Piper Jaffray has reiterated their Overweight rating on Target

in the lead up to 3Q earnings being released Wednesday morning. In a note to clients Piper Jaffray writes, "Although the base business remains challenging, we believe the 5% REDcard rewards and P-Fresh frequency initiatives should result in valuation expansion. Shares trade at a discount to the S&P500 and below historical norms but, we believe, should return to historical norms as comps appear poised to accelerate given current initiatives." TGT closed Monday at $54.16.