Target stock rallies, and two bulls share why the run will continue

Target has been on the move.

The shares have moved higher this week after the retailer announced the success of its activewear brand. All In Motion is the 10th exclusive Target brand to generate $1 billion in sales. 

Stifel analysts upgraded Target shares to buy on Monday, noting the gains in digital sales. With the increased use of pick up and drive-up purchasing, the company has been able to build solid growth over the past year, with the stock up nearly 70% in 12 months.

"If you look at its growth through the pandemic, they've actually managed to put one foot in front of the other, so their growth throughout has been solid, but they're actually one of the cheaper names in the segment," Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, told CNBC's "Trading Nation" on Monday. "I think that it's an interesting look right now."

Target trades at 22 times forward earnings. Other big-box retailers such as Walmart and Costco trade with a higher multiple.

Ari Wald, head of technical analysis at Oppenheimer, said the stock's technical setup also indicates further growth.

"Target is an established momentum name here. It has worked, it is working, it's leading, and, more importantly, based on our work, it should continue to work, based on a time momentum profile and bullish trend,"  Wald said during the same interview. 

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But, even though he anticipates upside, Wald recommends waiting a bit.

"In terms of levels, there is support at its 50-day [moving] average at $182 if you're looking at a level to trade around. But, looking ahead we expect a new high above $200, which was its prior peak based on that bullish trend. Stick with it," Wald said.

Target traded at $195 on Tuesday morning. The shares hit a high just under $200 in mid-January.

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