UPDATE: BofA Securities Double Downgrades Kohl's (KSS) to Underperform, 'supply chain issues could overshadow progress on long-term plan'

BofA Securities analyst Lorraine Hutchinson downgraded Kohl's (NYSE: KSS) from Buy to Underperform with a price target of $48.00 (from $75.00).

The analyst comments "We are downgrading the stock to Underperform. We think reduced receipts from supply chain issues could hinder Kohl’s sales recovery and offset both progress that the team is making on women’s and the benefit of Sephora. Kohl’s Active and women’s private label businesses have a high risk of delayed receipts and stock outs. While lower receipts mean less clearance, which is good for margins, we believe the sales headwind will be difficult to offset. We are reducing our F21/22 estimates by 30c/$1.11 to $5.79/$5.36. For F21, our estimate moves from the high end to the low end of guidance as some of the risks were contemplated in the range. We see the biggest risk to consensus in 1H22 and our F22 estimate is 10% below consensus. The stock is relatively inexpensive but with declining estimates, we see downside. Our $48 PO is based on 3.5x EV/EBITDA (was 4x)."

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 $53.66 yesterday.

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