Jefferies Comments On TGT Acquisition

Target Corporation (NYSE: TGT) announced the acquisition of up to 220 Zellers leases for $1.85bn to be paid in two equal installments in May and September of this year, Jefferies reports. It has also announced that it will be actively pursuing the sale of its credit card portfolio.

“The acquisition of Zellers leasehold interests should raise Target's long-term growth profile by providing a strong platform to launch into the Canadian market, in our view,” Jefferies writes. “The sale of credit card receivables would de-risk the balance sheet while also providing some funding flexibility for ongoing share repurchases.”

Target Corporation closed Thursday at $55.42.