What happened
Even for a stock in the battered retail sector, Kohl's (KSS -2.20%) has really struggled this year. Unfortunately for the company and its investors, there was little relief in sight on Friday. The storied retailer's shares traded down by nearly 5% on the day, as they were hit by not one, not two, but three analyst price target cuts.
So what
Admittedly, one of the trio of cutting analysts didn't make much of a slice. This was Deutsche Bank's Paul Trussell, who now feels Kohl's stock is worth $36 per share, down only slightly from his previous $37 estimation. He still believes in the retailer's potential, however, as he's maintaining his buy recommendation on the stock.
Trussell's colleague Omar Saad at Evercore ISI is more of a bear. Saad cut his price target to $32, well below his previous level of $45. He's also keeping his recommendation intact, only it's a less positive in line (hold).
Finally, there was Baird's Mark Altschwager, who like his Deutsche Bank peer made only a modest price target adjustment on Kohl's. Altschwager cut his to $40 per share from $42, and similarly is maintaining the equivalent of a buy recommendation on the shares.
In a new research note, the prognosticator reasoned that Kohl's stock is reasonably priced even in the drastic case of a U.S. recession. His bullishness is tempered somewhat by not-so-inspiring year-to-date performance, plus the company's tough and competitive environment, in addition to negative anticipated macroeconomic developments.
Now what
These adjustments add to the setbacks endured by Kohl's recently. The most immediate one was the second-quarter earnings report it published on Thursday. Although the retailer beat the average analyst estimate for revenue, its top line sank notably on a year-over-year basis. Compounding that, it cut its guidance to well below many analysts' projections.
