Target improves its e-commerce efforts

Wells Fargo senior analyst Matt Nemer questioned the perception that Target Corp. remains way behind in e-commerce initiatives. "While we believe this was accurate in the past," Nemer wrote, "we think Target has made significant strides catching up, and this is underappreciated by the Street."

Nemer highlighted what he believes are five misperceptions of Target's digital business strategy including: Target isn't investing enough in e-commerce, shipping is too slow, prices are too high, mobile offerings are not great and Target's website is subpar.

Nemer countered each point in a research report noting: Target spent more than $1 billion on e-commerce and information technology in 2012 and 2013, it shaved two days off average shipping speeds and expanded the buy-online pickup-at-store program, pricing studies show only a small gap with its competitors, Target's Cartwheel app is the fourth most popular e-commerce app and Target has made strides improving reliability and response times of its website.

Patrick Kennedy

Imation moves to appease activists

Imation Corp. announced more disappointing financial news with its 2014 results released last week. The company also announced that it hired Houlihan Lokey as an adviser to seek strategic alternatives. That move was partly in response to urging from investors. Eric Martinuzzi, an analyst with Minneapolis-based Lake Street Capital Markets noted as much in a research note last week. "We believe the announcement of the adviser engagement was part show and part pragmatism," Martinuzzi wrote. "The board needed to show activists and other investors 2015 would not be a 2014 replay, with two small, growing businesses overwhelmed by two large shrinking businesses and no bold action."

Patrick Kennedy

St. Jude tells analysts to look for better 2015

St. Jude Medical met with analysts in New York two weeks ago for its annual investor meeting. Management told analysts they were focused on organic sales growth in 2015 and that the three primary growth drivers would be: the launch of CardioMEMS, market share gains in atrial fibrillation and return to growth with its neuromodulation products. JPMorgan analyst Mike Weinstein was confident enough in St. Jude's presentation to maintain his "overweight" rating. "St. Jude has perhaps the most intriguing pipeline in large-cap med-tech, in our view, with the potential to bring it into multiple new growth markets," wrote Weinstein.

Patrick Kennedy