Baird analyst Peter Benedict upgraded Target (TGT) to Outperform and raised his price target for the shares to $85 from $75. The stock closed yesterday up 3% to $73.88.

Better than expected comps should help narrow Target's "still-meaningful" valuation gap versus the overall market and competitor Walmart (WMT), Benedict tells investors in a research note. He sees more room for the shares to run following the 13% year-to-date rally. The analyst believes Target's accelerated remodels, additional exclusive brand launches and emerging convenience-oriented fulfillment options will serve as catalysts in 2018, in addition to easy compares in Q1.