Jim Cramer and Jack Mohr love Target (TGT) and it’s one stock in the Action Alerts PLUS portfolio that has been bringing in big money. Target made headlines last week for bringing in CVS Health on a deal that would have CVS controlling all of Target’s in-store pharmacies. Cramer and Mohr agree that this was a creative and strategic move by Brian Cornell, CEO of Target. Cramer spoke with Cornell and explained that Cornell is very aware of Target’s strengths and weaknesses. Target was not doing well in Canada and Cornell was strategic enough to cut the losses and end their Canadian operations. Target had issues with its pharmaceuticals division and so they brought in CVS. While some people believe that bringing CVS into Target stores will mean that Cornell will lose control of that business, Cramer believes ‘if anything, he’s going to get more store traffic’ from bringing in CVS. Cramer backs CVS as a very good operator and the deal will solve Target’s issue of not having a profitable pharmacy business. Mohr says that now Target has $1.2 billion after-tax proceeds to put towards Target’s stock buybacks.
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