Cramer: After more breach news, is worst over for Target?

Target's worst nightmare?

The headlines might tell a different story, but CNBC's Jim Cramer believes the worst might be over for major retailer Target.

Target announced on Friday that last month's massive online security breach compromised the personal information of 70 million individuals, in addition to the 40 million people who had their credit and debit card information stolen. Near the same time as the disclosure, Goldman Sachs upgraded Target stock to a "buy" rating from a "hold." Cramer said he agreed with the call.

"It seemed like, 'Oh, Goldmanwhat a bunch of clowns,' " Cramer said on "Squawk on the Street." "Then you read the Goldman recommendation and it's, 'Look, the number is going to be bad because of the breach. And then you have to get in.'"

(Read more: Cramer: The Street loves to hate this stock)

Cramer believes the controversy over the security breach at Target and subsequent decline in foot traffic in stores was fleeting.

"If you didn't shop there before, you're not going to shop there again," Cramer said earlier on "Squawk Box." "There was a momentary decline in traffic. The traffic is coming back."

While specialty retail stores such as Five Below remain more appealing to him than big box retailers, Cramer said he appreciated Target's transparency in disclosing more details on the breach.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." Reuters contributed to this report.