Kohl’s Corp. shares were upgraded to outperform by analysts at Baird on Friday, due to the company’s off-mall footprint, improving product portfolio and strong loyalty program in the face of Amazon.com Inc.’s looming threat to the retail industry. Baird analyst Mark Altschwager wrote that Kohl’s looks well-positioned to hold its own over the pivotal holiday period. Cost savings, as well as inventory reduction initiatives provide good near-term visibility into free cash flow, Altschwager wrote. “Looking ahead, we believe a more pragmatic growth outlook from management, aggressive actions on the cost front, and momentum with traffic and omni-channel initiatives result in better risk/reward for shares,” Altschwager wrote in a note to analysts. Shares of Kohl’s have declined close to 17% in the year to date, while the S&P 500 index is up more than 15% and the Dow Jones Industrial Average is up nearly 19%.
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