Piper Jaffray Overweight On Target (TGT)

Piper Jaffray is reiterating its Overweight rating and $66 price target on shares of Target Corporation TGT. In a note sent to clients, Piper Jaffray writes, "Approx 40 to 45% of Target transactions are conducted using a debit card and based on the currently proposed legislation we est the company's earnings could increase by $.25/shr in the 12 months following implementation. While debit swipe fees in isolation are a benefit to TGT's earnings, the competitive landscape across retail coupled with potentially higher banking costs to the consumer will likely mitigate some of the upside. We believe this announcement is a net positive for TGT, and when combined with investments in frequency driving initiatives, upside potential to FY12E EPS is likely if demand continues to recover." Shares of TGT gained 8 cents yesterday to close at $58.60.