Kohl’s (KSS – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Oliver Chen from TD Cowen maintained a Hold rating on the stock and has a $8.00 price target.
Oliver Chen has given his Hold rating due to a combination of factors impacting Kohl’s current financial position and future outlook. The company recently reported a better-than-expected fourth-quarter earnings per share, but its guidance for the upcoming fiscal year fell short of market expectations. Additionally, Kohl’s has reduced its quarterly dividend significantly, which signals a cautious approach to managing cash flow amidst a challenging retail environment.
Despite efforts to reinvest in product categories and modernize store layouts, the company’s financial leverage remains a concern, with a high net debt to EBITDA ratio. The decline in digital sales and issues in the Legacy Home segment have also contributed to volatility. While there are opportunities for improvement, such as simplifying promotional strategies and enhancing private brand execution, the overall uncertainty and mixed signals from the market justify a Hold rating at this time.
In another report released yesterday, Telsey Advisory also maintained a Hold rating on the stock with a $13.00 price target.
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