UBS Raises Price Target on Kohl's Corp. (KSS) to $44 Following 2Q EPS Beat

August 12, 2016 9:03 AM EDT
Get Alerts KSS Hot Sheet
Price: $40.56 +0.82%

Rating Summary:
    8 Buy, 14 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
Trade KSS Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

UBS reiterated a Neutral rating on Kohl's Corp. (NYSE: KSS), and raised the price target to $44.00 (from $37.00), following the company's 2Q earnings report. KSS reported EPS of $1.22, ahead of the Street's $1.03 estimate.

Analyst Michael Binetti commented, "KSS reported 2Q EPS of $1.22 (UBSe: $1.04, Street $1.03). SSS of -1.8% was ~in line with our -2% est. Upside was from better-than-expected GM (+50bp YOY vs UBSe: -50bp), and strong inventory mgmt. (inventory was down -7.6% YOY). KSS maintained guidance for inventory to be down –MSD% by year end—which should offer downside support to GMs in 2H. We're encouraged that KSS lowered '16 EPS guidance (we think this was expected after a 1Q miss and now removes a NT stock overhang). We're raising our '16E EPS to $3.80 (from $3.62), based on 1) SSS -1.6%; 2) GM flat YOY; and 3) SGA deleverage of 55bp. We're forecasting SSS of -1% in 3Q, and -0.5% in 4Q."

For an analyst ratings summary and ratings history on Kohl's click here. For more ratings news on Kohl's click here.

Shares of Kohl's closed at $44.19 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

UBS, Earnings

Add Your Comment