Story updated at 9:50 a.m. to reflect market activity.
Shares of Target were falling 1.9% to $71.14 in morning trading.
The analyst firm raised its 2014 EPS estimates for the retailer to $3.24 a share from $3.16 a share. BMO now expected Target to report earnings of $3.97 a share in 2015, up from previous estimates of $3.85 for the year.
BMO analysts Wayne Hood and Shannon Coyne said they raised their EPS estimates for Target based "on the better-than-expected results and emerging signs the company is poised to achieve accelerating earnings growth on improving U.S. comp-store sales and EBITDA margin trend."
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Separately, TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TARGET CORP (TGT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."