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Investing.com - BofA Securities raised its price target on Kohl’s (NYSE:KSS) to $8.40 from $7.00 on Thursday, while maintaining an Underperform rating on the retailer’s stock. According to InvestingPro data, the stock has shown significant momentum, surging 21.4% in the past week and 45.76% over six months.
The price target increase follows Kohl’s second-quarter earnings per share of $0.56, which exceeded BofA’s estimates of $0.39 and consensus expectations of $0.31. The earnings beat was primarily driven by lower SG&A expenses and higher credit revenue.
BofA Securities noted that the upside from credit will become a headwind in the second half of the year, putting pressure on earnings per share for that period. The firm raised its fiscal 2025 and 2026 EPS estimates by $0.14 and $0.09 respectively to reflect the second-quarter beat, offset by comparable sales and credit pressures.
The new price target of $8.40 represents 3x fiscal 2026 estimated EV/EBITDA on higher estimates, according to the research note.
BofA Securities maintained its Underperform rating on Kohl’s stock, citing challenges in rebuilding sales amid a volatile macroeconomic backdrop.
In other recent news, Kohl’s Corporation reported its second-quarter earnings for 2025, delivering an adjusted earnings per share (EPS) of $0.56, significantly exceeding analysts’ expectations of $0.30. Despite this positive earnings surprise, the company’s revenue slightly missed forecasts, coming in at $3.35 billion compared to the anticipated $3.37 billion. These results have drawn attention from investors and analysts alike. Evercore ISI responded to Kohl’s performance by raising its stock price target to $13.00 from $8.00, while maintaining an "In Line" rating. The firm highlighted Kohl’s effective self-help initiatives, such as revitalizing proprietary brands and adjusting promotional strategies. These recent developments indicate a proactive approach by Kohl’s in addressing market challenges.
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