S&P MAINTAINS STRONG BUY OPINION ON SHARES OF TARGET CORP.
Apr-Q EPS of $1.02, vs. $0.98, excluding tax benefits but including Canadian costs, was $0.02 above our estimate. Upside came from better expense leverage and credit segment results. While management continues to plan conservatively given fragile consumer sentiment, we believe company initiatives like the loyalty and remodel programs will boost results, and FY 14 Canadian entry will be more appreciated by investors in the coming months. We up our FY 13 forecast $0.02 to $4.26, and keep our $72 target price, which blends sum-of-the-parts and historical/comparable P/E analyses.