Evercore ISI analyst Michael Binetti has maintained their neutral stance on KSS stock, giving a Hold rating today.
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Michael Binetti has given his Hold rating due to a combination of factors related to Kohl’s current performance and future outlook. The company has shown improvement in stabilizing its trends through self-help initiatives, such as reinvigorating proprietary brands and re-adding core categories, which have positively impacted its performance in the second quarter. Despite a decline in traffic, there was an improvement throughout the quarter, with traffic turning positive in July, indicating early success in attracting core consumers back with a focus on value.
However, while the sales outlook appears achievable with the guidance for the third and fourth quarters showing a decline in same-store sales, there are concerns about the company’s margin outlook. The guidance suggests slightly negative earnings per share for the third quarter, marking the first-ever loss for Kohl’s in this period. Additionally, the company’s ability to manage tariff pressures and execute in its higher-margin proprietary brands is crucial for maintaining its margin outlook. These mixed signals contribute to the Hold rating, as there are both positive developments and challenges that need to be addressed.
Binetti covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Ferrari, and Gap Inc. According to TipRanks, Binetti has an average return of 7.1% and a 56.39% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.00 price target.