Bloomberg

Target (TGT - Get Report) is hitting the mark when it comes to taking market share from smaller competitors, leading analysts at Barclays to upgrade the stock to overweight from equal-weight. 

The firm also raised the company's price target to $115 per share from $85 per share. The new price target represents almost a 50% upside from the stock's current price. Target shares were rising 1% to $77.89 on Monday afternoon. 

"If we focus on the two categories TGT appears to have the most competitive advantages in , Apparel and Home Furnishings, we believe TGT has a minimum ~$140 billion sales opportunity for market share," analyst Matthew McClintock wrote. 

This market expansion should help the company overcome the margin pressure that fulfillment costs have placed on most retailers.

"[Target] has a much better strategic position related to this given it over-indexes on higher margin product categories, which it claims can offset the pressure. While we are skeptical of this, we believe that even if TGT continues to face pressure, it has a realistic opportunity to drive EBIT margin expansion from higher incremental margins related to market share gains," McClintock said. 

The firm also notes that Target is ahead of Amazon (AMZN - Get Report) in the same day delivery space and that it has already built a supply chain that fulfills e-commerce primarily from its brick-and -mortar locations. Amazon revealed on its quarterly earnings call last week that it was moving towards offering free one-day shipping of Prime products from the previous two-day standard, sending shares of Target and Walmart (WMT - Get Report) lower.  

Amazon is a key holding in Jim Cramer's Action Alerts PLUS charitable trust