Buy Target due to 'improving' sales results, 'attractive' valuation: Credit Suisse

Shoppers push loaded up carts at a Target store in Culver City, California.
Mark Ralston | AFP | Getty Images

Target shares will thrive this year because of the improving economic environment for its customers, according to one Wall Street firm.

Credit Suisse initiated coverage on Target stock with an outperform rating, predicting the retailer will report sales above expectations in 2018.

"Target's aggressive strategic changes in 2017 position it as a survivor and set it up for stronger near-term comps – the key driver of this stock historically. Our work highlights benefits from a strengthening US consumer, upside potential from company-specific initiatives, and select market share gains," analyst Seth Sigman wrote in a note to clients Monday entitled "Positioned for Improving Trends, while Valuation Remains Attractive."