Kohl's Analyst Drops Bear Stance On Vaccine Tailwinds, Activist Presence
Kohl's Corporation (NYSE: KSS) announced better-than-expected quarterly results Tuesday, driven mainly by upbeat gross margins.
Recent COVID-19 vaccine developments provide tailwinds for the company, according to Gordon Haskett.
The Kohl's Analyst: Chuck Grom upgraded Kohl's from Underperform to Hold and announced a $28 price target.
The Kohl's Thesis: Although the department store space continues to face challenges, the company has several strategic initiatives that could lead to top- and bottom-line growth through 2021, Grom said in an upgrade note.
"The presence of both Ancora Advisors and Legion as shareholders has created some pressure on the C-Suite up in Menomonee Falls," the analyst said.
Both activist investors were part of the team that proposed changes at Bed Bath & Beyond Inc. (NASDAQ: BBBY) in April 2019, he said.
“While we don’t think there are any 'silver bullets' to correcting Kohl’s multi-year traffic drought overnight ... we do think that a focus on loyalty and leaning into categories of strength (vs. legacy areas of weakness) seems appropriate,” he said.
KSS Price Action: Shares of Kohl's were down 1.88% at $28.65 at last check Wednesday.
Latest Ratings for KSS
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Telsey Advisory Group | Maintains | Market Perform | |
Mar 2022 | Credit Suisse | Maintains | Neutral | |
Feb 2022 | Gordon Haskett | Downgrades | Buy | Accumulate |
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