Cowen names Target a 'best idea' for 2020, says digital business overcoming Amazon threat

A cashier places a bag of items in a customer's shopping cart at a Target Corp. store in Chicago, Illinois, U.S., on Saturday, Nov. 16, 2019.
Daniel Acker | Bloomberg | Getty Images

As retail continues to evolve thanks to e-commerce, big box retailer Target is finally keeping up, according to Cowen.

The firm named the retailer as a "best idea" for 2020, as Target is both "profitable" and "innovative."

"We continue to foresee an environment of accelerating bifurcation in retail, with TGT well positioned as a long-term winner," said Cowen retail analyst Oliver Chen in a note to clients on Wednesday.