Market Overview

UPDATE: UBS Upgraded Kohl's on New Strategy

Related KSS
If The Economy Is Improving, Why Are Dollar Stores The Only Retailers With Positive Trends?
Tough Time Ahead for Grocery Stocks and ETFs?
5 High-Yield Dividend Stocks to Avoid (GuruFocus)

In a report published Monday, UBS analyst Michael Binetti upgraded Kohl's Corp. (NYSE: KSS) from Neutral to Buy and raised the price target from $54 to $69.

Binetti noted that UBS had concerns regarding Kohl's merchandise and inventory strategy since its initiation in April 2012. The analyst commented, "the company's new strategy is a much better, multifaceted strategy with clearly defined programs to target each of the major challenges of the business (compared to a rather blunt strategy last year to build inventories full of low-impact merchandise, assuming high inventories would drive traffic/transactions)."

UBS reported that Kohl's new strategy should drive a consistent +3.5 percent EBIT growth over the next two years. The analyst updated its 2015 EPS estimate to $4.80 versus the street's $4.60. Binetti forecasted a 2015 EPS estimate of $5.30 and possible $6.00 EPS in 2015.

The analyst further commented that "1) Re-Emphasizing National Brands vs Private Brands; 2) Driving Loyalty with Non-Credit Card Customers; and 3) Improving Penetration in Key Traffic Driver Categories (cosmetics, accessories)," will help drive a consistent SSS growth in FY14.

Kohl's closed at $56.85 on Friday.

Latest Ratings for KSS

May 2017Gordon HaskettInitiates Coverage OnReduce
May 2017Atlantic EquitiesUpgradesUnderweightNeutral
Feb 2017SusquehannaInitiates Coverage OnNeutral

View More Analyst Ratings for KSS
View the Latest Analyst Ratings

Posted-In: Michael Binetti UBSAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (KSS)

View Comments and Join the Discussion!