UPDATE: Deutsche Bank Lowers PT to $41 on Kohl's and Downgrades Rating from Hold to Sell on Weakening Traffic

Deutsche Bank analyst Paul Trussell published a report on Kohl's

that downgraded its rating from Hold to Sell and lowered its price target from $42 to $41. Deutsche Bank reported that, “We are downgrading KSS to Sell from Hold as weakening traffic share losses to off-price, less share donation from JCP, cold weather) and a heavy inventory position (according to our channel checks) could lead to incremental promotions and greater than expected markdowns, pressuring margins. With a FY13 EPS range reliant on a return to GPM expansion, we believe current forecasts are likely too high and we are positioned at the low-end of the forecast (with risk to the downside) as a result. We see KSS retouching its prior lows and we've set a $41 PT accordingly.” Shares of Kohl's closed at $46.43 on Thursday.