Target's Analyst Day Is Almost Here: What To Know

Jefferies' Daniel Binder has maintained a Hold rating on Target Corporation TGT with a price target of $78.00, while Credit Suisse's Michael Exstein has also maintained a Neutral rating with a price target of $72.00.

Upbeat Analyst Day Likely

"As we reflect on a lot of TGT's work in 2015, we are impressed most by the clarity of its promotional program, focus on signature categories and, more recently, supply chain work, Binder said, while adding that same-store sales were, however, struggling to overcome the 3 percent level.

The analyst also noted that competition for Target has been getting more intense, with other companies trying to reposition themselves. Binder expects an upbeat meeting on the company's analyst day.

Target's guidance for 2016 was ahead of the consensus, driven by its large share buyback program, as well as $1.2 billion in proceeds from the sale of the pharmacy business.

Binder expects the Analyst Day to focus on "product differentiation, scaling food tests, progress report on cost cutting and offsetting investments, eCommerce investment details and a clearer picture of the rest of the year's financials."

Beat Quarter

Credit Suisse's Michael Exstein mentioned that Target reported its results ahead of expectations, with strength in the "signature categories" and benefiting from aggressive share buybacks.

Comps grow 1.9 percent, driven by a 1.3 percent increase in traffic. However, segment operating margins declined 9 bps, due to lower gross margins.

"The company's strategy is to aggressively close the gap between digital/e-commerce and brick-and-mortar through investment and promotion," according to the Credit Suisse report.

The company is focused on improving its in-store execution through remerchandising initiatives in its "signature categories. Target is also working on improving store presentations via visual merchandizing.

These efforts are aimed at reviving momentum and being perceived by the consumer as differentiated.