UPDATE: Morgan Stanley Reiterates Underweight on Kohl's Based on Lower Than Expected Q1 Sales

In its May 13th report, Morgan Stanley analyst Heather Balsky has reiterated its underweight rating for Kohl's

citing lower than expected Q1 sales for the clothing company, despite beating analyst estimates for earnings per share. In the report, Balsky stated, "We think shares could move higher given very low buyside expectations and short interest at a 3-month high. We would view a stock price run up as a good opportunity for investors to trim any KSS holdings." Kohl's is currently trading at $52.29, up 5.25 percent since market open.