Kohl’s Receives $9B Buyout Offer – Report

Department store chain Kohl’s Corp. (NYSE: KSS) has received an around $9 billion buyout offer from a Starboard Value-backed consortium, The Wall Street Journal said, citing people familiar with the matter.

The consortium, led by activist hedge fund Starboard Value-owned Acacia Research, has offered to pay $64 per share in cash for Kohl’s shares.

The Wisconsin-based company has been facing pressure to boost its share price. Two activist shareholders have been urging it to explore strategic alternatives.

Recently, Kohl’s said that its Board “regularly works with specialized advisers to evaluate paths that have the potential to create long-term value.”

It plans to announce its strategic plans at an investor day scheduled for March 2022. Its upcoming earnings report for the fourth quarter and full-year 2021 is also scheduled to be released in March.

About Kohl’s

Founded in 1962, Kohl’s department stores offer apparel, shoes, and accessories for men, women, and children, as well as home & beauty products. The company operates 1,158 stores in every U.S. state except Hawaii.

The stock closed 2.6% down on Friday at $46.84.

Wall Street’s Take

Last week, Evercore ISI analyst Omar Saad maintained a Hold rating on Kohl’s with a price target of $64 (36.6% upside potential).

Additionally, Lorraine Hutchinson of Bank of America Securities reiterated a Sell rating on the stock and lowered the price target to $46 from $55 (1.8% downside potential).

Overall, the stock has a Hold consensus rating based on 5 Buys, 4 Holds, and 3 Sells. The average Kohl’s stock forecast of $64.50 implies 37.7% upside potential. Shares have lost 8% over the past six months.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Kohl’s performance.

According to the tool, compared to the previous year, Kohl’s website traffic registered a 5.4% increase in global visits in December. Moreover, website traffic has increased 7.1% year-to-date against the same period last year.

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