Telsey Reiterates Market Perform Rating on Kohl's (KSS)

Telsey analyst Dana Telsey reiterated a Market Perform rating and $9.00 price target on Kohl's (NYSE: KSS).

The analyst commented: "KSS delivered a nice earnings beat against preannounced results back in May, benefiting from strong sales and better expense control, while the gross margin was softer. Comps improved sequentially for the second consecutive quarter and came in a touch better than expected, though KSS has not posted positive comps since 2021. The reaffirmed annual guide, in our view, was an encouraging sign in the current environment. Despite the recent leadership shakeup, we believe Kohl’s strategic direction is unlikely to shift meaningfully in the near term. Former CEO Ashley Buchanan had outlined a clear roadmap centered on a more curated product mix, stronger value messaging, and a seamless omnichannel experience. We expect interim CEO Michael Bender to follow these priorities while stabilizing the business following several years of volatile performance. We remain encouraged by the rest of the management team's grasp of the challenges it faces and the strategies it has laid out thus far to address them. That said, it will take some time to win back the consumer after the company improves its assortment, value equation, and customer experience. Amid challenges, both macro and company-specific, Kohl’s is betting on its partnership with Sephora and store optimization efforts to stabilize performance. Therefore, we maintain our Market Perform rating and $9 price target, which assumes a 14.5x multiple on our two-year forward EPS estimate of $0.62, in-line with the one-year average NTM multiple of 14.4x."

For an analyst ratings summary and ratings history on Kohl's click here. For more ratings news on Kohl's click here.

Shares of Kohl's closed at $13.34 yesterday.

You May Also Be Interested In

• Odysight.AI Inc. (ODYS) PT Lowered to $6 at Benchmark
• FedEx (FDX) PT Lowered to $397 at Bernstein SocGen Group
• TD Cowen Reiterates Buy Rating on argenx SE (ARGX)