Deutsche Bank Sees Accelerating Retail Sales; Raises Estimates on KSS, JCP, TGT, JWN

Following yesterday's better-than-expected Sept. retail sales results, analysts at Deutsche Bank are raising their estimates, and, in turn, their price targets, on several popular retail stocks, citing accelerating sales.

The firm notes that its September broadline index was up 0.6% for the month (vs. it's -1.2% forecast), "led by the Department store's outperformance." Deutsche attributes a portion of the strength to the Labor Day shift and seasonal weather.

• Kohl's (NYSE: KSS) - calls Kohl's the "stand-out" with a 5.5% jump in monthly comps, suggesting that the retailer could be "taking up-for-grabs share." The firm raised its Q3 EPS estimate from $0.43 to $0.53, which compares to the Street estimate of $0.55, and its FY10 estimate from $3.67-$3.82, versus the analyst consensus of $2.88. Price target moves $62 to $77.
  
• JCPenney (NYSE: JCP) - raised its Q3 estimate from $0.05 to $0.08, its FY10 estimate from $1.52 to $1.57 and its FY11 estimate from $2.25-$2.31. The Street is currently looking for Q3, FY10 and FY11 earnings of $0.07, $0.99 and $1.47, respectively. Price target moves from $40 to $53.
  
• Target (NYSE: TGT) - raised its Q3 estimate from $0.43 to $0.45, FY10 from $3.60 to $3.63 and FY11 from $4.48 to $4.50. Analysts are looking for EPS of $0.46 for Q3, $3.04 for FY10 and $3.42 for FY11. Price target moves from $58 to $72.
  
• Nordstrom (NYSE: JWN) - Q3 EPS estimate raised from $0.29 to $0.31, FY10 raised from $1.73 to $1.75 and FY11 from $1.99 to $2.20. The Street sees Q3, FY10 and FY11 EPS of $0.30, $1.60 and $1.84, respectively.

Notably, Deutsche Bank maintains Buy ratings on each of the above stocks.

You May Also Be Interested In

• Deutsche Bank Upgrades Target Hospitality (TH) to Buy
• Deutsche Bank Starts Ardagh Metal Packaging S.A. (AMBP) at Hold
• DA Davidson Starts Comfort Systems USA (FIX) at Buy