Oppenheimer initiated coverage on Target Corporation (NYSE:TGT) with an Outperform rating and a $190 price target. In 2022, the company’s shares underperformed, down 36% compared to a 19% decline in the S&P 500. Looking forward, the analysts see the potential for a strong multi-year profit recovery, driven by gross margin expansion, management cost actions, and share gains.

Nearer term, the analysts expect bumps along the way as seemingly aggressive Street forecasts for fiscal 2023 and headwinds in certain discretionary categories (CE, Home, etc.) muddle TGT's prospects for at least the next few quarters.

Longer term, the analysts believe the company is well positioned to continue capturing share, driven by digital efforts, store investments, merchandising success on the exclusive brand front, competitor liquidations over time, and partnerships with other brands/retailers.