NEW YORK (TheStreet) -- Shares of Target (TGT) - Get Report were lower in pre-market trading Friday as the company considers switching to sheet supplier Trident after cancelling its business with Welspun India, according to sources cited by Bloomberg.
Last week, the Minneapolis-based retailer terminated its $90 million contract with Welspun after learning that the company was selling cheap bed sheets passed off as Egyptian cotton.
Target recently discovered over 750,000 Welspun sheets and pillowcases mislabeled as the premium material, Bloomberg reports. The company has since pulled the items from its shelves and offered refunds to customers.
The company's current contract with Trident is for terry towels but the company is reportedly sampling Trident's sheets.
Punjab, India-based Trident is one of the few Indian suppliers that has the ability to produce more bed sheets, Bloomberg added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: TGT