tiprankstipranks
Two New Suitors Line Up to Acquire Kohl’s
Market News

Two New Suitors Line Up to Acquire Kohl’s

Story Highlights

Two new names have entered the fray to acquire Kohl’s. Shares are languishing near 52-week lows and the new bids may have come at the right time!

The possible sale of American department store retail chain, Kohl’s (KSS), has been meandering for a while now. Earlier this year, the company rejected an offer of $64 per share, which would have valued it at $9 billion.

According to The Wall Street Journal, two suitors have made bids for Kohl’s: private equity firm, Sycamore Partners; and Franchise Group, a retail holding company.

While Sycamore’s bid is in the mid-$50 per share range, Franchise’s bid is around $60, which means a $7 billion to $8 billion valuation. Kohl’s Board is expected to review these bids in the coming days.

Kohl’s has seen a slew of acquisition-related developments for a number of months now. Its investors recently rejected an attempt made by activist investor Macelleum Advisors to replace 10 of its board members. However, the company’s recent Q1 numbers failed to cheer the markets.

Further, M&A activity can become sluggish in an environment of rising interest rates, falling markets, and decreasing money supply. The uncertainty also remains that a deal may take longer to fructify or may not materialize. Multiple names have already seen their interest in acquiring Kohl’s cooling down.

Analyst’s Take

UBS analyst Jay Sole has reiterated a Sell rating on the stock while decreasing the price target to $32 from $38.

Meanwhile, Telsey Advisory’s Dana Telsey has a Hold rating on the stock alongside a price target of $55.

Overall, the Street has a Hold rating on Kohl’s based on five Buys, six Holds, and two Sells. The average Kohl’s price target of $50.67 implies a potential upside of 23.05%. That’s after a 29% slide in share price over the past month.

Closing Note

The current macro environment has been challenging for retailers and share prices can keep gyrating. In such a scenario, where Kohl’s stock is languishing at $41 levels, the two new bids may have come at the right time.

Read full Disclaimer & Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles