According to Zhitong Finance APP, Oppenheimer believes that despite Target's (TGT.US) disappointing third-quarter performance and the downgrade of the fiscal 2024 outlook, the prospect of the company's stocks reaching a target price of $165 has improved, which is why they will restore it as a preferred stock rating and maintain its 'outperform large cap' rating. Oppenheimer analyst Rupesh Parikh stated that Target 'is forming a very attractive risk/reward scenario' and pointed out several bullish factors, such as the stock's attractive entry points, achievable guidance for the fourth quarter, a 6% operating margin, and an 'attractive' 3.52% dividend yield.

Investor sentiment towards Target seems 'too negative', which also explains why the company fell 23% after releasing guidance. However, Parikh believes that this prediction reflects the reduced shopping days in the holiday season, risks of price cuts, and adverse factors in non-essential categories, but all these are temporary, hence Parikh is bullish on Target in the long run.

Parikh stated, 'We believe that through digital efforts, investment in stores, successful sales of exclusive brands, gradual clearing of competitors, and collaborations with other brands and retailers, the company will be in a favorable position to capture market share.' He recommends that investors take advantage of the depressed stock price to buy in.

Target is among Oppenheimer's favorites alongside Church & Dwight (CHD.US), Costco (COST.US), freshpet (FRPT.US), SharkNinja (SN.US), and walmart (WMT.US).