Market Overview

2 Analysts React To Kohl's Q1 Earnings Miss

Share:
2 Analysts React To Kohl's Q1 Earnings Miss

Kohl’s Corporation (NYSE: KSS) shares plummeted Tuesday after reporting a first-quarter earnings miss. A couple of analysts weigh in on what to do with the stock moving forward.

Staying Positive

“We see good value at current levels—with reset estimates supporting more attractive risk/reward—but we expect valuation to remain under pressure until Kohl’s demonstrates comp re-acceleration,” Baird analyst Mark Altschwager wrote in a note.

Altschwager said Kohl’s has differentiated itself in an evolving retail landscape with its innovative thinking and robust omni-channel platform, but following a successful 2018 the path to growth looks steeper.

“Kohl’s will need to demonstrate that last year’s outperformance was driven as much by internal initiatives/momentum as the more favorable external backdrop," he said. He added that growth is expected to resume in the second half as the Amazon.com, Inc. (NASDAQ: AMZN) returns program and new brands ramp.

Altschwager maintained an Outperform rating and lowered his price target from $80 to $70.

Staying Neutral

Wedbush analyst Jen Redding maintained a Neutral rating on Kohl's, lowering her price target from $65 to $58.

“Margin trends in the first quarter reflected an unfavorable shift between spring and fall merchandise, while higher digital penetration added to shipping costs. Unfavorable weather, underperformance in the Home Category, and less productive promotional events depressed business vs. expectations,” Redding wrote in a note.

Kohl’s closed down another 3.1 percent at $53.44 per share.

Related Links:

Bought Something On Amazon? You Can Soon Return It At Any Kohl's Location

Cowen: Speed-To-Market Initiatives Are Emerging Catalysts For Nike, Adidas, While Kohl's Leads In Private Label

Photo courtesy of Kohl's.

Latest Ratings for KSS

DateFirmActionFromTo
Jun 2019DowngradesNeutralUnderweight
May 2019MaintainsNeutral
May 2019MaintainsUnderweight

View More Analyst Ratings for KSS
View the Latest Analyst Ratings

Posted-In: Baird Jen ReddingAnalyst Color Earnings News Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (AMZN + KSS)

View Comments and Join the Discussion!

Ideaya Biosciences IPO: What You Need To Know

After A Rainy Q1, Home Depot Analysts Look At Consumer Trends, Chinese Tariffs