The holiday season is over and things are going back to normal for retailers. Efraim Levy from S&P Capital IQ, was on CNBC to discuss the problem e-retailers are experiencing currently and his firm’s rating on big-tier retailers including Dollar Tree, Inc. DLTR, Kohl's Corporation KSS, Sears Holdings Corp SHLD and Target Corporation TGT.
On The Upside Of Online Retail
In discussing online versus in-store retail, Levy said, “One thing that is going to eat into margins though is a lot of these shipping costs from the online sales. Online sales have been a big factor for the industry growth.”On Dollar Tree's 'Buy' Rating
On 'Sell' Rated Retailers
Levy discussed the other end of the spectrum as well “There are companies like Sears that we have a ‘Sell’ on; we have Kohl’s, it is also a sell […] Sears is bordering on irrelevance if you can say it for a company with that many billions of dollars of sale, but the trend is negative there.”On Target As A ‘Sell’
Levy explained that Target's rating is due to something different than Kohl's and Sears. “Well, Target is well above our target price. So, they have been working to make that turnaround.”
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