NEW YORK (TheStreet) -- Target (TGT) shares are up 0.76% to $77.85 in afternoon trading on Friday after the retailer announced that it is selling its Target Commercial Interiors commercial furnishing business to Minneapolis, MN-based Omni Workplace for an undisclosed amount.
The sale is the latest wrinkle of the retailer's previously announced restructuring plan to get leaner by focusing on its core businesses while getting rid of outside projects that are no longer ancillary to the company's future growth.
"Target is continuing to drive our transformation by focusing on our core businesses and putting our guests at the center of everything we do. Target Commercial Interiors has a rich history and a great track record with clients, but its business model is tailored to commercial customers. The decision to exit a business is always difficult, but we are thrilled that TCI will remain in Minneapolis," said CFO John Mulligan.
Target is a holding of Jim Cramer's Action Alerts PLUS Charitable Trust. He had this to say about the company's plan:
This company reports next week and I like the risk-reward ahead of the announcement simply because the stock's come down so hard in sync with the disappointing numbers from Kohl's (KSS). I would buy some stock ahead of the quarter and more after if it goes down as I am a long-term believer in CEO Brian Cornell's vision for the once-great chain.
TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of A-. TheStreet Ratings team has this to say about their recommendation: