UPDATE: Cowen Downgrades Kohl's (KSS) to Market Perform

Cowen analyst Oliver Chen downgraded Kohl's (NYSE: KSS) from Outperform to Market Perform with a price target of $35.00 (from $60.00).

The analyst comments "Unfortunately, we believe KSS is vulnerable to the pressure the middle income consumer is experiencing and this may drive less visibility into the company achieving the medium-term target of 7-8% EBIT margin (in line with FY18). That said, we remain confident in the long-term and believe management is controlling the controllable factors. We like the progress with the Sephora partnership and ~$650mm of liquidity, which could help drive comps and repurchases, respectively. We do not downgrade our rating to Underperform as valuation is modest, but the stock could be range bound as investors wait and see for traction within the women's and kid's categories, expense leverage, inventory rationalization, and merch margin resilience. We lower our target to $35 based on 8x FY2 P/E on our revised estimates."

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 $31.10 yesterday.

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