Kohl’s price target lowered to $12 from $15 at Jefferies

Jefferies lowered the firm’s price target on Kohl’s (KSS) to $12 from $15 and keeps a Hold rating on the shares. The firm says a “storm is brewing” in the U.S. consumer discretionary sector as industry inventories are rising for the first time in two years and about to exceed sales growth. Looking at prior inventory to sales growth cycles over the past 22 years, when inventories exceed sales growth, gross margins compress and stock returns lag, the analyst tells investors in a research note. Jefferies cut estimates Kohl’s as a result.