Courtesy of Benzinga.
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.
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.
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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
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