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 impacting Kohl’s performance. The company reported a significant improvement in its third-quarter results, with earnings per share exceeding expectations and a smaller decline in same-store sales than anticipated. This positive performance was driven by better-than-expected tariffs and a favorable mix of proprietary brands, which helped boost the EBIT margin.
However, despite these improvements, there are concerns that temper the overall outlook. The Sephora business within Kohl’s showed a disappointing performance, with a -1% comp, raising questions about the effectiveness of past investments and disruptions. Additionally, while self-help initiatives have shown promise in re-engaging core consumers, the long-term sustainability of these efforts remains uncertain. These mixed signals contribute to the Hold rating, as the potential for upside is balanced by existing challenges.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $23.00 price target.