UBS Doubles Down on Kohl’s Sell Rating, Sees Long …
From Financial Modeling Prep: 2025-04-03 13:04:00
UBS reaffirmed a Sell rating on Kohl’s with a $5.00 price target, citing skepticism about the retailer’s turnaround efforts. Shares dropped 24% after store closure plans were announced.
Despite acknowledging management’s urgency, UBS doubts Kohl’s early moves will stop market share losses to competitors like off-price retailers.
UBS remains concerned about Kohl’s struggles with pricing, merchandise appeal, and customer service, areas where rivals are gaining ground. Limited evidence suggests a near-term reversal in trajectory.
UBS projects a 12% compound annual decline in earnings per share over the next five years, citing competitive pressures and weak fundamentals. Disappointing earnings could push shares closer to the $5.00 price target.
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