Target (TGT) could return to "positive" comparable sales growth as management accelerates merchandising and customer-experience initiatives, Oppenheimer said in a report Wednesday.

The firm said its analysts came away "incrementally upbeat" about Target's prospects after meeting with the company's senior leadership at its analyst day, citing a more urgent approach from management and "aggressive plans" aimed at restoring growth.

The company's management also signaled a "healthy start" to the fiscal year, noting positive sales growth in February and maintaining its long-term outlook for low- to mid-single-digit revenue growth and "operating margin expansion," Oppenheimer said, adding that merchandising initiatives across categories including beauty, home, apparel and food & beverage could support "improved performance" if execution remains strong.

Despite the stock rising about 24% year to date, outperforming the broader S&P 500, the firm said Target shares remain "attractively valued" at roughly 14 times their fiscal 2027 earnings estimate, according to the report.

Oppenheimer has an outperform rating on Target and raised its price target to $140 from $130, citing confidence that the company's "turnaround efforts" could drive growth over time.

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