We are upgrading Target to Market-Perform as the risk-reward skew is more balanced, after mgmt. announced initiatives across merchandising, stores, and labor, paid for by productivity measures. While execution risk remains high, we think the stimulus expected this year could support Target’s near-term momentum while remaining bearish on its longer term prospect. Target attributed its recent challenges to a lack of clarity in strategy, a loss of focus in merchandising in key categories (home in particular), and a lack of investment in stores and labor.