8.7 C
New York
Thursday, March 28, 2024

Kohl's Gets Mid-Day Downgrade, Analyst Cites 'Structural Challenges'

Courtesy of Benzinga.

Kohl's Gets Mid-Day Downgrade, Analyst Cites 'Structural Challenges'

Related KSS
Kohl's Stock Faceplants After Company Lowers Guidance
Benzinga's Top Upgrades
Kohl's Crumbles On Cut Guidance, Comps Miss And 'Volatile' Q4 Sales (Investor’s Business Daily)

Wall Street dragged Kohl’s Corporation (NYSE: KSS) through the mud on Thursday after the company lowered its 2016 guidance. The retailer’s stock fell nearly 20 percent by Thursday afternoon as investors fled after a fiscal update revealed the company significantly lowered its earnings outlook.

MKM Partners analyst Patrick McKeever downgraded the stock to Neutral from a Buy rating, lowered the firm’s price target for Kohl’s from $57 to $47 and reduced 2016 EPS outlook from $4.75 to $4.30.

McKeever also adjusted the fourth-quarter EPS estimate, from $1.89 to $1.56.

Related Link: Kohl’s Gets A Lift From Talks Over Going Private

Justification For The Downgrade And PT Cut

According to McKeever, Kohl’s sales outside of holiday seasons have been “volatile and generally weak,” even if the retailer managed to post five consecutive quarters of increasing comps. McKeever also noted Kohl’s weak performance in the recession as market fears of another dip mount.

“Quarterly same-store sales fell 5.6 percent on average during the last recession, the weakest performance in our coverage,” McKeever wrote. “While MKM’s Chief Economist Michael Darda isn’t yet calling for recession, his concern is increasing.”

Kohl’s will report fourth-quarter earnings on February 25. Kohl’s shares were down 19 percent at time of writing with a value of $41.31.

Image Credit: Public Domain

Latest Ratings for KSS

Date Firm Action From To
Feb 2016 MKM Partners Downgrades Buy Neutral
Feb 2016 Buckingham Research Upgrades Neutral Buy
Feb 2016 Deutsche Bank Maintains Hold

View More Analyst Ratings for KSS
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Guidance Short Ideas Downgrades Price Target Previews

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,451FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x