Kohl's (KSS) PT Lowered to $10 at Telsey

Telsey analyst Dana Telsey lowered the price target on Kohl's (NYSE: KSS) to $10.00 (from $13.00) while maintaining a Market Perform rating.

The analyst commented: "Kohl's ended FY24 relatively better than much of the year as it posted a solid EPS beat. Sales came in just slightly better than consensus and its SG&A was nicely controlled, which offset a relatively large gross margin miss. New CEO Ashley Buchanan has outlined his focus areas for this fiscal year, which is summed up by offering great product, great value, and a great customer experience. However, there is work to be done to accomplish these goals, as evidenced by the company's FY25 outlook, which came in well below the market's prior (already-modest) expectations. New leadership will look to bring stabilization to the business following several years of volatile performance, but visibility to a timeline to a turnaround to better profitability is challenging in our view, particularly against an increasingly uncertain macro backdrop. It will also take time to win back the consumer once it improves its assortment, value equation, and customer experience. Therefore, we maintain our Market Perform rating. On our lower estimates, we are reducing our price target to $10 (from $13), which assumes a 4.8x multiple on our two-year forward EBITDA estimate of $1.13B (compared to the 5-year NTM average multiple of 5.1x)."

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