Kohl’s Shares Jump 12% on Gordon Haskett Upgrade
Kohl’s stock rose 12% following an upgrade from Hold to Buy by Gordon Haskett, which carried a price target of $27. The share price gain occurred while the S&P 500 index fell more than 1%. Gordon Haskett issued the recommendation before the market opened on Thursday. The firm characterized the retailer’s turnaround as early but cited improving customer traffic as a primary factor. Traffic declines, which were in the high single digits earlier in the year, have moderated to the mid-single digits since June. Data from foot-traffic tracker Placer.ai indicated that Kohl’s visits exceeded their recent average by 9.6% during early October sale days. This represented the largest increase among the retail chains tracked by the firm. The $27 price target set by Gordon Haskett is significantly higher than the Wall Street consensus, which stood at $19 as of Monday. That consensus figure was already below the stock’s closing price of $22.16 on Wednesday. Individual analyst targets for the stock range from $9 to $41.50, reflecting wide divergence in valuation views. At Wednesday’s close, Kohl’s shares traded at 15 times forward earnings, a multiple above the five-year average of 13 times. Following the recent price increase, the multiple approached 17 times forward earnings, while Haskett’s target corresponds to approximately 18 times forward earnings. TIKR tracks 13 analysts covering Kohl’s, with varying ratings across Buy, Hold, and Sell categories. In the second quarter ended August 1, Kohl’s net sales declined by 0.9%. Gross margin increased by 305 basis points to 43.0%, a rise attributed to tariff refunds. Management subsequently raised its full-year outlook to net sales ranging from down 1.5% to flat and resumed share buybacks. Revenue decreased from $16.6 billion in fiscal 2023 to $14.8 billion in fiscal 2025. Analysts project revenue of $14.9 billion for both fiscal 2026 and fiscal 2027, with fiscal 2026 ending in January 2027. CEO Michael Bender has noted that rising prices for essentials such as gas and food are squeezing customers, posing a risk to the flat revenue forecast if the holiday season underperforms. Kohl’s third-quarter report is scheduled for release in November and will include data from October’s deal week.
Kohl’s stock rose 12% following an upgrade from Hold to Buy by Gordon Haskett, which carried a price target of $27. The share price gain occurred while the S&P 500 index fell more than 1%. Gordon Haskett issued the recommendation before the market opened on Thursday. The firm characterized the retailer’s turnaround as early but cited improving customer traffic as a primary factor. Traffic declines, which were in the high single digits earlier in the year, have moderated to the mid-single digits since June. Data from foot-traffic tracker Placer.ai indicated that Kohl’s visits exceeded their recent average by 9.6% during early October sale days. This represented the largest increase among the retail chains tracked by the firm. The $27 price target set by Gordon Haskett is significantly higher than the Wall Street consensus, which stood at $19 as of Monday. That consensus figure was already below the stock’s closing price of $22.16 on Wednesday. Individual analyst targets for the stock range from $9 to $41.50, reflecting wide divergence in valuation views. At Wednesday’s close, Kohl’s shares traded at 15 times forward earnings, a multiple above the five-year average of 13 times. Following the recent price increase, the multiple approached 17 times forward earnings, while Haskett’s target corresponds to approximately 18 times forward earnings. TIKR tracks 13 analysts covering Kohl’s, with varying ratings across Buy, Hold, and Sell categories. In the second quarter ended August 1, Kohl’s net sales declined by 0.9%. Gross margin increased by 305 basis points to 43.0%, a rise attributed to tariff refunds. Management subsequently raised its full-year outlook to net sales ranging from down 1.5% to flat and resumed share buybacks. Revenue decreased from $16.6 billion in fiscal 2023 to $14.8 billion in fiscal 2025. Analysts project revenue of $14.9 billion for both fiscal 2026 and fiscal 2027, with fiscal 2026 ending in January 2027. CEO Michael Bender has noted that rising prices for essentials such as gas and food are squeezing customers, posing a risk to the flat revenue forecast if the holiday season underperforms. Kohl’s third-quarter report is scheduled for release in November and will include data from October’s deal week.