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A Target worker helps a customer at a Target store in San Rafael, California.
Target shares will rise as the discount retailer benefits from the closure of Toys R Us stores, according to Baird.
The firm reiterated its outperform rating for Target’s stock, predicting the retailer will report sales above expectations in the second half of this year.
“We expect solid 2Q results, reflecting continued traction from top-line initiatives, the onset of seasonal sales, and a favorable calendar shift,” analyst Peter Benedict said in a note to clients Wednesday. “We see Target as a primary beneficiary from the demise of Toys ‘R Us. … All told, we see upside to Street comp estimates across 2H.”