Kohl's (KSS) in for Tough Holiday Battle; Goldman Maintains Sell Rating

Goldman Sachs maintained a Sell rating on Kohl's (NYSE: KSS) with a modified price target of $47.00 (from $45.00). FY13/FY14/FY15 EPS estimates were lowered to $4.16/$4.35/$4.65 from $4.23/$4.39/$4.70 and analyst Stephen Grambling introduced FY16E EPS of $5.03. Grambling thinks Kohl's may be in for a tough holiday battle.

"KSS reported a 3Q EPS miss on weaker-than-expected comp sales from a combination of ongoing traffic declines, softer e-commerce sales amidst the re-platform, and ramped promotions," said the analyst. "We do not expect an inflection in 4Q as B2S has historically been a pre-cursor for the holidays, KSS faces its most challenging traffic comparison, and there are fewer selling days."

"We expect more aggressive promotions across the mid-tier due to the shorter holiday and challenging backdrop," he added.

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 $53.55 yesterday.

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