Analyst Paul Lejuez from Citi maintained a Hold rating on Kohl’s (KSS – Research Report) and decreased the price target to $8.00 from $11.00.
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Paul Lejuez has given his Hold rating due to a combination of factors affecting Kohl’s performance and outlook. Despite a generally positive holiday season for retail, Kohl’s reported a significant decline in comparable store sales, which underperformed compared to some of its peers. The company’s guidance for future performance was notably below market expectations, and they also decided to cut their dividend, indicating potential financial caution.
Additionally, while there were some positive signs such as stronger sales in January and February and growth in Sephora sales, these were not enough to offset broader concerns. The management’s decision to maintain most stores open despite financial challenges and the company’s struggle to boost sales in its core business contribute to skepticism about a successful turnaround. The market cap’s low level relative to enterprise value suggests potential volatility, which further supports the Hold rating as the company navigates these challenges.
In another report released on March 12, Evercore ISI also maintained a Hold rating on the stock with a $9.00 price target.