Kohl’s Corp. was downgraded to neutral from buy at MKM Partners after the company cut its outlook in a release Thursday morning. Analysts lowered their price target to $47 from $57. MKM analysts said they “prefer not to make a ratings change in response to a pre-release,” but the bank’s efforts, including a new loyalty program and upgrades in its beauty merchandise, have produced “weak and choppy growth.” While the retailer did see strong holiday sales, future sales aren’t promising. “[S]ales outside the holiday period were very volatile and generally weak, which doesn’t bode well for FY16, particularly the first half when there are fewer seasonal events,” MKM’s note said. Analysts are also concerned that Kohl’s is “particularly vulnerable to another economic slowdown.” Kohl’s shares are down 19% in Thursday trading and down 38% for the past 12 months. The S&P 500 is down 6.2% over the past year. See also: Kohl’s shares sink after company cuts outlook
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