03:38 PM EDT, 06/25/2024 (MT Newswires) -- Target ( TGT ) is sending a positive signal to investors following its partnership with e-commerce platform Shopify (SHOP), UBS said Tuesday in a report.

The retailer agreed to sell products from Shopify on the digital Target Plus marketplace. With the partnership, Target ( TGT ) is seen driving e-commerce growth, the investment firm said.

"There is a perception that the performance gap between Target's ( TGT ) eComm and the likes of Walmart US eComm or Amazon is due to Target's ( TGT ) lack of contribution from marketplace," UBS said. "This partnership should change that perception for the better."

The partnership may drive topline growth through the remainder of 2024, and "should make a growing contribution to the retailer's overall comp as it integrates new merchants and offers more SKUs [stock-keeping units] on its website," UBS said.

UBS said the partnership may help improve the online shopping experience for Target's ( TGT ) customers and prompt Shopify sellers to tap Target ( TGT ) as an outlet.

UBS has a buy rating on Target ( TGT ) with a price target of $185.

Target ( TGT ) shares fell 1.9% in recent trading Tuesday.

Price: 146.91, Change: -2.78, Percent Change: -1.86