Target Corporation (NYSE:TGT) shares rose $1.47, or 2.34%, to $64.19 after the retailer announced that it had retained Goldman Sachs to explore options related to its credit card business and re-evaluate its use of debt in its capital structure, according to an 8-K filing with the SEC.

"Given our objective to create substantial shareholder value over time, we plan to approach the capital markets to determine whether Target or a financial institution is better suited to own our receivables," said CFO Doug Scovanner. "Unlike other retail credit card portfolios, Target’s receivables portfolio possesses a unique combination of attributes which include strong double-digit growth, a consistently high yield and unprecedented integration with our retail operations."

The move comes as the result of pressure from Bill Ackman's Pershing Square, which owns a 9.6 percent stake in the retailer. The activist hedge fund said in a previous letter that the company's shares were "undervalued" and hinted towards a sale of Target's credit card business. The company had resisted previous requests to sell the division, but many are saying the bad credit markets may have played a role in the reverse decision.

In the end, this is great news for Target shareholders as its credit card business could fetch a substantial amount of money. The fact that the company is also considering a change to its capital structure and increase its share buyback program is an added bonus. Combined, these factors make TGT a stock worth watching!

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