Kohl’s downgraded to Neutral from Outperform at Baird

Baird downgraded Kohl’s (KSS) to Neutral from Outperform with a price target of $18, down from $25. The firm says ongoing pressure in Kohl’s core apparel and footwear business, implying share losses during back to school period, greater comp volatility as management iterates on changes to the operating model, and a pending CEO change each reduce its conviction in the value case for shares. Baird sees opportunity for comp and margin stabilization and improvement as more changes take hold, but with the timeline uncertain amid an intense competitive environment, the stock’s risk/reward looks balanced today, the analyst tells investors in a research note.