Update shared on29 Aug 2025
Fair value Increased 42%Kohl’s analyst price target has been raised from $10.07 to $14.28 as improved Q2 results, tighter expense and inventory management, and the rollout of additional self-help initiatives have led to better-than-expected profitability and signs of operational stabilization, despite ongoing sector challenges.
Analyst Commentary
- Improved Q2 results exceeded expectations, with guidance raised and signs of sales trend stabilization, though overall sales remain weak.
- Effective expense and tight inventory management contributed to better profitability and outperformance in the quarter.
- Traffic declined year-over-year, but trends and comps improved as the quarter progressed, indicating potential for continued operational recovery.
- Management is implementing more self-help initiatives than previously anticipated, contributing to constructive outlooks from some bullish analysts.
- Despite near-term improvements, bearish analysts remain cautious due to ongoing sector headwinds, the need to re-engage core customers, and uncertainty around the sustainability of recent momentum.
What's in the News
- Evercore ISI raised Kohl's price target to $13 from $8 following a solid quarter and noted improved traffic trends as well as more extensive self-help initiatives; the rating remains In Line (Evercore ISI).
- Kohl's has requested extended payment terms from certain vendors as part of adjustments to its payment strategy amid a turnaround effort (Bloomberg).
- The stock surged 33% as retail traders targeted Kohl's as a potential “meme stock,” though it has since lost about half its peak value; short interest remains high (Forbes).
- Retail investors are piling into heavily shorted, low-priced stocks like Kohl's, contributing to a 38% single-day share price increase (Bloomberg).
- Kohl's is frequently mentioned alongside Opendoor Technologies in the context of renewed meme stock trading driven by viral social media posts (Bloomberg, Forbes).
Valuation Changes
Summary of Valuation Changes for Kohl's
- The Consensus Analyst Price Target has significantly risen from $10.07 to $14.28.
- The Consensus Revenue Growth forecasts for Kohl's has significantly risen from -4.5% per annum to -1.6% per annum.
- The Net Profit Margin for Kohl's has significantly risen from 1.12% to 1.45%.
Disclaimer
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