KSS +1.62 to 42.79, nice follow through rally -
briefing -
Kohl's upgraded to Outperform at Robert W. Baird; tgt raised to $47 --
Robert W. Baird upgrades KSS to Outperform from Neutral and raises their tgt to $47 from $46. While Amazon looms large over the sector, Kohl's off-mall footprint, improving product portfolio, and strong loyalty (credit+Yes2You) position the company to hold its own over the holiday period (comp trend improving), while cost savings and inventory reduction initiatives provide good near-term visibility into FCF. Rewards accruals that pressured Q3 GM should abate in Q4 and potentially drive incremental comp benefits (Yes2You bounce-backs). If firm is wrong, they see an >5% dividend yield, buybacks, and takeout speculation protecting downside. Raising price target to $47 (estimates unchanged).
