Department store operator Kohl's Corporation (
) on Wednesday caught a big upgrade from analysts at Deutsche
The firm boosted its rating on KSS from "Hold" to "Buy" and
lifted its price target from $49 to $62. That new target suggests a
19% upside to the stock's Tuesday closing price of $52.02.
A Deutsche Bank analyst commented, "We are upgrading shares of
KSS to Buy as: (1) improving SSS trends, (2) easy compares, (3) use
of its b-sheet to support EPS, & (4) cheap valuation make the
stock attractive. While it's fair that the KSS story is not
bulletproof, at only 10.0x, we're prepared to absorb the risk and
point to our upgrade of TGT in Feb. as a similar set-up. Most
importantly, early indicators in various parts of KSS business -
national/private brands, traffic, UPT, juniors, and the
credit/noncredit gap - suggest to us that KSS has stabilized its
comp profile. All told, after severely under-performing the group,
the risk/return is attractive, and we see upside in the stock from
both multiple expansion and EPS upside."
Kohl's shares were mostly flat in premarket trading
The Bottom Line
Shares of Kohl's (
) have a 2.46% dividend yield, based on last night's closing stock
price of $52.02. The stock has technical support in the $46-$48
price area. If the shares can firm up, we see overhead resistance
around the $56-$57 price levels.
Kohl's Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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