It’s time to buy Target stock with a bargain because they could be up nearly 20% from current levels, according to Wells Fargo. Analyst Edward Kelly upgraded Target’s stock to overbalanced, saying in a note Monday that the retailer is oversold. Target fell 25% after reporting first-quarter earnings, after a series of inventory troubles also hit shares of Walmart and other retailers. Shares are down nearly 30% this year. In our view, the TGT sell-off offers an opportunity to lure a proven bullion into an undervalued earnings rally at the right price. “1) The company deserves criticism for its inventory flaws, but it’s not alone (ahem…WMT) and management’s decisive action will help protect pandemic profit sharing ( real prizes at the end of the day 2) TGT had the earliest and biggest profit achieved in the retail sector, showing relatively lower risk from here and a faster recovery closer to $11. 4) Favorable risk/reward,” Kelly continued. The analyst also raised his price target by about 25%, from $155 to $195. The new price target represents a nearly 20% gain from Friday’s close. Shares were up 1.4% in pre-market trading on Monday. Certainly, there are challenges ahead for the retailer. Wells Fargo’s Kelly said difficulties executing its digital strategy, as well as losing market share to Amazon and Walmart, could hurt the company. However, the retailer is poised to bounce back after proactively addressing its inventory issues. “Inventory seems to be a moving target at the moment as consumer demand appears to have cooled down since TGT made the final charge, so there could be some additional risk,” Kelly writes. risk to a halved return”. “That said, TGT will have relatively less margin risk going forward and could be one of the first to experience a margin recovery, as it has acted so decisively. In our view, TGT is now better positioned to play breach once the dust settles.” Target’s next earnings report is scheduled for Aug. 17. — CNBC’s Michael Bloom contributed to the report. this fox.