Target's game plan is solid but will take patience to see results

Sterne Agee issued a report on Target Corporation

saying that they were encouraged by Target focusing on its digital platform and merchant culture. Furthermore Target has over $2 billion of potential cost savings to fund investments, thus their margin profile looks to be in good shape for the next few years. Sterne Agee rates Target as Neutral with a $71.00 price target. CEO Brian Cornell announced 5 key priorities for the company going forward: 1. On Demand Shopping: Target wants to provide shoppers with the ability to shop anywhere/anytime they want and will use a channel-agnostic approach to do so. 2. Signature categories: Target wants to differentiate its Style, Baby, Kids, and Wellness categories from its competitors. 3. Localization and Personalization: Target wants to improve the online experience of its customers. 4. New Urban Formats: City Target and Target Express will be a main focus of the company in order to improve the shopping experience of those living in big cities. 5. Simplify and control costs: Target announced that they will cut SG&A expenses and COGS by over $2 billion over the next few years. Currently Target Corporation is trading at $78.04, up 0.41 percent.