In a report released today, Oliver Chen from TD Cowen maintained a Hold rating on Kohl’s, with a price target of $23.00.
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Oliver Chen has given his Hold rating due to a combination of factors influencing Kohl’s current market position. The company has shown some positive signs, such as a sequential improvement in comparable sales and a raised full-year earnings guidance, which suggests potential for growth. However, despite these improvements, there are still challenges that need to be addressed, including the need for sustained growth in key categories like women’s apparel and the stabilization of other income sources.
Chen acknowledges the efforts being made under the leadership of the new CEO, Michael Bender, who is focusing on a strategic mix of national and proprietary brands and improving inventory in critical categories. Nevertheless, the limited visibility into long-term structural growth and ongoing macroeconomic pressures on Kohl’s core customer base contribute to the cautious Hold rating. The analyst is monitoring the company’s ability to achieve consistent comparable sales growth and the effectiveness of its couponing strategies in attracting and retaining core customers.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Canada Goose Holdings, and Kering SA. According to TipRanks, Chen has an average return of 4.4% and a 49.20% success rate on recommended stocks.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $15.00 price target.