Morgan Stanley Maintains Equal-Weight Rating on Kohl's

A report from Morgan Stanley reiterates its Equal-Weight rating on Kohl's KSS. The report states, “The mid-point of mgmt's top-line outlook implies 180 bps acceleration in the 2-yr avg comp trend sequentially. Our MS Retail Sales Lead Indicator is calling for over 100 bps of slowdown in retail sales growth. We are Equal-weight KSS shares as we believe current valuation (10.7x P/E 2012e MS) is appropriate for a 10-15% (3-yr CAGR) earnings story." KSS closed yesterday at $54.29.