Courtesy of Benzinga.
Despite gaining 70 percent over the past six months, Kohl’s Corporation (NYSE: KSS)’s stock is still underperforming the S&P 500 index by 30 percent over the past three years.
But according to Wall Street’s newest bull analyst, the company should be viewed as a “rare large cap value idea.”
The Analyst
JPMorgan’s Matthew Boss upgraded Kohl’s’ stock from Neutral to Overweight with a price target boosted from $51 to $72.
The Thesis
Kohl’s should be considered a “rare large cap value idea” within the retail landscape as it boasts an attractive core customer in the $75 to $80,000 salary range, Boss said in a note. The company’s store fleet mostly outside of the shopping mall makes it well positioned to deliver on operational and traffic initiatives and deliver a high-single to low-double-digit earnings per share growth rate.
Kohl’s underlying comp has improved quarter-over-quarter for four straight quarters, mostly due to management’s focus on e-commerce penetration, buy-online-pick-up-in-store, a focus on the active and wellness category, among others, the analyst said. As such, the company has now laid out the foundation for multi-year growth but there are three factors that drive even higher upside, including the recent partnership with Amazon.com, Inc. (NASDAQ: AMZN), market share gain from rivals closing their stores, and a boost in the American middle class.
Price Action
Shares of Kohl’s hit a new 52-week high of $65.06 and was seen trading higher by nearly 4 percent Friday.
Analyst Echoes Predictions Amazon Will Buy Retailer: ‘Downtrodden Big Box, Department Store Player’
Report: The Retailers Most Dependent On Holiday Sales
Image Credit: MB298 (Own work) [CC BY-SA 4.0], via Wikimedia Commons
Latest Ratings for KSS
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2018 | JP Morgan | Upgrades | Neutral | Overweight |
Jan 2018 | RBC Capital | Upgrades | Underperform | Sector Perform |
Nov 2017 | Morgan Stanley | Maintains | Underweight |
View More Analyst Ratings for KSS
View the Latest Analyst Ratings
Posted-In: JPMorgan Matthew Boss retailersAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga