NEW YORK (TheStreet) -- Shares of Target (TGT) - Get Target Corporation Report were declining in early afternoon trading on Friday as the Minneapolis-based discount retail giant said it's cutting ties with Mumbai-based Welspun India, saying the manufacturer sent it fake Egyptian cotton sheets.
Welspun is the largest towel manufacturer in Asia, and the second largest worldwide, according to the company's website.
Target said it discovered last month that 750,000 sheets and pillowcases labeled as Egyptian cotton were made with another kind of cotton, Bloomberg reports. The company is pulling the items from its stores and told customers today that it will give them a refund on the products.
The products were produced between August 2014 and July 2016, and retail for as much as $75.
Target is Welspun's second largest customer, next to Bed Bath & Beyond (BBBY), and also lists Walmart (WMT), J.C. Penney (JCP) and Macy's (M), among other companies, as clients. It also provides towels for the Wimbledon tennis championship and the Rugby World Cup, Bloomberg reports.
Welspun India is a subsidiary of Welspun Corp, an India-based diameter line pipe company.
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 has this to say about the recommendation:
We rate TARGET CORP as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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