Department store operator Kohl’s Corporation (KSS) on Friday caught a big upgrade from analysts at Jefferies & Co.
The firm said it boosted its rating on KSS from “Hold” to “Buy” while lifting its price target from $47 to $59. That new target suggests a 20% upside to the stock’s Thursday closing price of $49.05.
A Jefferies analyst commented, “To a large extent, this is a bet on management, which we think recognizes its challenges and is addressing price, marketing, and product content. Shorter term, we think inventory flow is improving as stores transition to spring. We believe the transition was particularly difficult this year due to winter clearance late in the season, combined with a lack of spring units in the store to capitalize on the early break in weather.”
Kohl’s shares were unchanged in premarket trading Friday.
The Bottom Line
Shares of Kohl’s (KSS) have a 2.61% dividend yield, based on last night’s closing stock price of $49.05. The stock has technical support in the $44-$46 price area. If the shares can firm up, we see overhead resistance around the $52 price level.
Kohl’s Corporation (KSS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.