In a report released on Tuesday, analysts at Gilford Securities downgraded discount department store chain Kohl’s Corporation (KSS) as confidence in the company is bleak.
The analysts reduced its rating on Kohl’s from “Buy” to “Hold.”
An analyst at Gilford Securities noted, “A case can be made for KSS on a value basis. But Kohl’s has taken longer than expected to pull out of its malaise and our confidence in Kohl’s has eroded. If December sales are strong, the stock may rally significantly. We believe it is more likely that Kohl’s prospects will remain murky through 2013′s first quarter.”
Kohl’s shares were down 6 cents, or -0.14%, in premarket trading on Wednesday.
The Bottom Line
Shares of Kohl’s (KSS) have a 2.89% dividend yield, based on last night’s closing stock price of $44.32. The stock has technical support in the $40-$41 price area. If the shares can firm up, we see overhead resistance around the $46-$48 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.