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Jefferies analysts are raising their price target on major retailer Target (TGT) to $205, remaining increasingly bullish on the chain over its innovation plans for 2024. Jefferies Senior Vice President of Equity Research Corey Tarlowe — the analyst behind Jefferies' latest call on Target, maintaining a Buy rating — joins Yahoo Finance to weigh in on what the strength of US consumers could mean for Target.

Tarlowe sees moderations in food prices and inflation as a chance to free up consumers' wallets and spending across Target's inventory categories: "What we're starting to see now is an improvement in general merchandise in Target's business and, I think, perhaps an improvement around tone for the broader consumer generally."

Tarlowe goes on to comment on Target's brand collaborations in its store locations and what a healthier US consumer also means for Walmart (WMT).

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Editor's note: This article was written by Luke Carberry Mogan.