Target Object tool can cut out some simple shapes with regular boundaries. For instance:

But if your image is more complex, you may need to take 2 more steps to finish your work, yet very quick.

Step 1. Drag and drop you picture to the left, use Target Object to surround that portion.

Step 2. Use the green tool to mark part of the foreground.

Step3. Use the red tool to mark part of the background.