TD Cowen downgrades Kohl’s on challenges in core business

TD Cowen last night downgraded Kohl’s to Hold from Buy with a price target of $21, down from $25. Despite initiatives in new and underpenetrated categories, the company’s comp has stayed negative for the past 10 quarters given challenges in apparel and footwear, the analyst tells investors in a research note. The firm says the stock’s valuation at “appears fair” and the shares could be rangebound pending visibility on sustainable growth. Challenges in Kohl’s core apparel and footwear business and middle income consumer pressure will likely persist, impacting basket and promotions in the second half of 2024.