In a Friday report, analysts at Citigroup reiterated the “Buy” rating for department store retailer Kohl’s Corporation (KSS), but lowered its price target.
The analysts lowered the price target from $63 to $61. The new valuation is a +36.6% upside from Friday’s closing price of $44.65.
Citigroup commented, “We rate the shares of Kohl’s Buy. Kohl’s is a well-positioned department store retailer due to its value proposition and continued inventory discipline. The company is focused on driving topline sales growth in stores and online and on enhancing the productivity and returns of its existing store base. From a sales perspective, keener focus on fashion merchandise and recent brand introductions and expansions should help to increase both traffic and ticket. From a margin perspective, we believe gross margins will be enhanced over time through improved merchandising, increased private label penetration, and technology rollouts, and SG&A expense should leverage as KSS realizes productivity gains in-store. We also expect the company to continue to return cash to shareholders through share repurchases and dividends.”
Kohl’s shares were down 10 cents, or -0.22%, in premarket trading on Monday.
The Bottom Line
Shares of Kohl’s (KSS) have a 2.87% dividend yield, based on Friday’s closing stock price of $44.65. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $48-$50 price levels.
Kohl’s Corporation (KSS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.