Market Overview

3 Catalysts For Kohl's As A Recovery Play

Share:
3 Catalysts For Kohl's As A Recovery Play

Department store Kohl's Corporation (NYSE: KSS) is well-positioned to take advantage of pent-up demand for discretionary items, according to BofA Securities. The firm upgrade Kohl's stock from 

Kohl's Recovery Prospects: Kohl's boasts three catalysts that position itself to win market share in a post-COVID-19 environment, analyst Brian Callen wrote in a note.

  1. Management deserves credit for implementing product changes, including rationalizing categories like women's simplifies its product portfolio but also adds depth. A focus on active, casual, outdoor categories, the addition of Sephora beauty shops, among others will drive traffic and attract new customers.
  2. Consumers should benefit from higher stimulus actions after the Democrats gained control of all three branches of government.
  3. Management took the opportunity to review its entire capital spend and expenses to lower costs wherever it can. Management has also targeted $100 million in annual savings moving forward that will help offset investments in pricing and promotional activity.

These three initiatives should also help Kohl's reinstate a dividend payment to investors and reduce debt leverage from 8.5 times in fiscal 2020 to 3.2 times in 2021 and 2.9 times in 2022.

KSS Price Action: Shares of Kohl's were trading higher by nearly 3% to $42.23 at publication time.

Photo credit: MB298, via Wikimedia Commons

Latest Ratings for KSS

DateFirmActionFromTo
Feb 2021Morgan StanleyMaintainsUnderweight
Feb 2021BairdMaintainsOutperform
Feb 2021Cowen & Co.UpgradesMarket PerformOutperform

View More Analyst Ratings for KSS
View the Latest Analyst Ratings

 

Related Articles (KSS)

View Comments and Join the Discussion!

Posted-In: Brian Callen Coronavirus Department Store retailAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
GNKJefferiesMaintains13.0
TDOCDA DavidsonMaintains275.0
ITRIOppenheimerMaintains127.0
CLHOppenheimerMaintains95.0
TDOCOppenheimerMaintains270.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com