Analysts Remain on the Sidelines for Kohl’s ahead of Q2 Results

Rating summary

Analysts remain on the sidelines about Kohl’s (KSS) ahead of its upcoming second-quarter results on August 21. Of the 21 analysts covering Kohl’s (KSS) stock as of August 13, 52% have recommended a “hold,” 38% have recommended a “buy,” and 10% have recommended a “sell.”

For the fiscal second quarter, Wall Street analysts have projected net sales to grow 2.7% to $4.3 billion. The adjusted EPS (earnings per share) are projected to jump 32.3% to $1.64.

Analysts Remain on the Sidelines for Kohl’s ahead of Q2 Results

Kohl’s has been making significant changes to boost its prospects, as department stores have taken a hit due to the growing clout of online retailers. Kohl’s is working on driving its digital and omnichannel platforms. The company is building six e-commerce fulfillment centers. Apart from that, Kohl’s is trying to make its business less reliant on weather and is improving its merchandise assortment.

The stock has seen just one target price change over the last 30 days. On August 10, Wedbush initiated coverage on KSS stock with a target price of $75 and a “neutral” rating. Analysts’ 12-month average target price for Kohl’s stock is $76.24, which reflects a 0.2% downside based on its August 13 price.

Wall Street’s ratings for peers

Analysts are on the sidelines for most of the department stores including Kohl’s and peers like Macy’s, JC Penney, and Nordstrom. Of the 16 analysts covering JCPenney (JCP), ~82.0% recommend a “hold,” while just 6% recommend a “buy.” Their mean target price is $3.35, which indicates a 36.2% upside.

Of the 24 analysts covering Nordstrom (JWN) stock, 71% recommend a “hold,” and 21% recommend a “buy.” On August 10, Wedbush initiated coverage on JWN with a $55 price and a “neutral” rating. JWN’s mean target price is $53.00, which indicates a 0.1% upside.

Of the 18 analysts covering Macy’s (M), 67% recommend a “hold,” and 22% recommend a “buy.” Their target price of $35.46 reflects an 11.5% downside based on the stock’s August 13 price.