BofA update shows where active managers are putting money
Investing.com - Evercore ISI raised its price target on Kohl’s (NYSE:KSS) stock to $13.00 from $8.00 on Wednesday, while maintaining an "In Line" rating following the retailer’s second-quarter performance. The stock, currently trading at $16.17 with a market capitalization of $1.81 billion, has shown a strong return over the past three months according to InvestingPro data.
The firm cited Kohl’s solid performance against low expectations, noting the company had more self-help initiatives than the market had recognized. These initiatives included reinvigorating proprietary brands, re-adding core categories, and including previously excluded brands in coupon promotions. Trading at a P/E ratio of 14.72 and offering a 3.83% dividend yield, InvestingPro analysis reveals the stock is trading at a notably low Price/Book multiple of 0.39.
While Kohl’s experienced approximately 4% lower traffic during the second quarter, Evercore ISI observed that trends improved throughout the period, with traffic turning positive in July. This improvement coincided with the company’s renewed focus on its value message.
Proprietary brands improved by 500 basis points as a percentage of total sales mix compared to the first quarter, according to the research note. This shift reflected early success in Kohl’s strategy to bring back core consumers.
The retailer’s decision to re-add important brands that had been excluded from coupon promotions in recent years also contributed to the improved performance that justified the higher price target.
In other recent news, Kohl’s Corp reported its second-quarter earnings for 2025, which exceeded expectations. The company announced an adjusted earnings per share (EPS) of $0.56, surpassing the projected $0.30, representing an 86.67% surprise. Despite this positive earnings performance, Kohl’s reported revenue slightly below expectations at $3.35 billion compared to the forecasted $3.37 billion. This earnings announcement has been a focal point for investors analyzing the company’s financial health. Additionally, the recent developments have sparked discussions among analysts, with some firms reassessing their outlook on Kohl’s based on these results. The earnings performance highlights the company’s ability to manage costs effectively, even though revenue targets were narrowly missed. These recent developments are crucial for investors considering Kohl’s financial trajectory in the current market environment.
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