Target Gains on Wal-Mart

Wal-Mart's(WMT Quote) legal troubles and strained public image might be catching up with it, sending Wall Street into the arms of its soon-to-be streamlined rival, Target(TGT Quote).

While shares of both companies rose in Tuesday's rally, Target has drastically outperformed its rival over the past year. The shares got a boost Tuesday after its investment rating was boosted on the belief that its high-quality discount goods and exclusive merchandise are starting to add up to the better shopping experience.

"Target has established a well-positioned discount store franchise by offering an above-average discount store customer a more upscale shopping format highlighted by exclusive branded merchandise with a noteworthy strength in softlines," said Mark Mandel, an analyst at Fulcrum Global Partners, in a Tuesday research note. He upgraded Target shares to buy from neutral with a $50 12-month target price. ...