ISI Group Reiterates Buy, $57 PT on Target

ISI Group maintains its Buy rating and $57 price target on Target

as debt refinance suggests that credit sale is on track. ISI Group says, "TGT's $2.5bn of debt issuance today appears consistent with its goal of selling its Credit business by late 4Q/ early 1Q. We believe TGT is likely to use $2.5bn of new financing as well as cash on hand to repay $2.8bn of JP Morgan backed receivables, as the deadline for prepayment is approaching in late January. By repaying the collateralized funding TGT received from JP Morgan back in 2008, it would regain a 100% ownership interest in its Credit receivables, helping facilitate a potential Credit sale to another 3rd party." TGT closed at $48.57 per share on Monday.