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Retail: Buy Wal-Mart or Target?

Target (TGT) will report earnings next Wednesday, followed by Wal-Mart Stores (WMT) a day later. Cowen & Co.'s Oliver Chen and his team take a look at the big box retailers vis-a-vis each other--and Amazon (AMZN)--ahead of the report, writing that they still prefer Wal-Mart.

Chen writes that Wal-Mart's management has shown it can merge "bricks and clicks," by leveraging its store base and innovating on its ecommerce platform. He's also encouraged that the improving food at home consume price index is a positive for...