Analyst Oliver Chen of TD Cowen maintained a Hold rating on Kohl’s, boosting the price target to $17.00.
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Oliver Chen has given his Hold rating due to a combination of factors impacting Kohl’s current market position. The company has shown some positive signs, such as less negative comparable sales and growth in certain categories like jewelry. However, there are ongoing challenges, including negative comparable sales for the 14th consecutive quarter and a decline in key revenue streams, particularly from credit card-related income, which is crucial for profitability.
Additionally, Kohl’s faces pressure from its core customer base, which is spending less frequently and seeking more product depth. The company’s strategic initiatives, such as changes in product offerings and coupon policies, have had mixed results, with some unintended negative consequences. Despite a raised price target, the valuation remains high compared to historical averages, indicating potential risks. These factors contribute to the Hold rating as the company works on stabilizing its core business and exploring new growth opportunities.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $13.00 price target.
Based on the recent corporate insider activity of 101 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KSS in relation to earlier this year.