Kmart Holdings, the US discount retailer that is buying Sears, saw its shares soar in New York on Friday, after one retail analyst raised his price target for the company by 60 per cent, citing benefits from the planned takeover of the department store.

In a bullish move reminiscent of the days of the internet stock bubble, Gary Balter, of UBS Investment Research, raised his price target for Kmart from $100 to $160, based on post-merger prospects for "significant cash flow through asset sales, cross-selling of proprietary brands, and cost savings, particularly at Sears".