Citi Upgrades Kohl's to Buy, Sees 53% Upside
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: CNBC
- Rating Upgrade: Citi upgraded Kohl's from neutral to buy and raised its price target from $14 to $22, implying a 53% upside from Friday's close, reflecting confidence in the company's future performance.
- Cash Flow Performance: Despite facing declining sales and macroeconomic pressures, analyst Paul Lejuez noted that the company achieved $1 billion in free cash flow last year, indicating improving financial health that investors should take note of.
- Sales Recovery: Kohl's posted its best quarterly comparable sales in four years, resulting in a 20% stock price increase in the trading session following its first-quarter earnings report, suggesting that its turnaround strategy is beginning to yield results and may attract more investor interest.
- Market Consensus Divergence: While Citi's perspective contrasts with the broader Wall Street consensus, with only 2 out of 14 analysts giving a strong buy rating, this discrepancy highlights a potential undervaluation opportunity for investors considering Kohl's future prospects.
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Analyst Views on KSS
Wall Street analysts forecast KSS stock price to rise
13 Analyst Rating
1 Buy
7 Hold
5 Sell
Moderate Sell
Current: 16.590
Low
7.00
Averages
19.58
High
25.00
Current: 16.590
Low
7.00
Averages
19.58
High
25.00
About KSS
Kohl's Corporation is an omnichannel retailer. The Company operates approximately 1,100 stores and a Website www.Kohls.com. The Company’s Kohl's stores and Website sell private and national brand apparel, footwear, accessories, beauty, and home products. The Company’s Kohl's stores generally carry a consistent merchandise assortment with some differences attributable to local preferences, store size, and Sephora at Kohl's shop-in-shops (Sephora shops). Its Website includes merchandise, which is available in the Company’s stores, as well as merchandise that is available only online. Its merchandise mix includes both national brands and private brands that are available only at Kohl's. Its private portfolio includes established brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, and nationally recognized brands such as LC Lauren Conrad, Nine West, and Simply Vera Vera Wang.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Growth Recovery: Macy's achieved its strongest sales growth in four years during Q1 of fiscal 2026, with net sales rising and guidance for the year improved, now projecting comparable sales growth between 0.5% and 1.2%, signaling market recovery.
- Asset Value Advantage: Macy's holds up to $9 billion in real estate assets while its market cap is around $6.3 billion, allowing investors to acquire its asset base at a significant discount, enhancing its investment appeal.
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- Investment Return Potential: Macy's P/E ratio stands at 10, having dropped as low as 7.5 in Q1 2026, indicating the stock is undervalued and attracting Warren Buffett's interest, with expectations that future prices will reflect its intrinsic value.
- Sales Growth Recovery: Macy's achieved its strongest sales growth in four years during Q1 of fiscal 2026, with net sales rising and guidance for the year improved, now projecting comparable sales growth between 0.5% and 1.2%, signaling market recovery.
- Asset Value Advantage: Macy's holds up to $9 billion in real estate assets while its market cap is around $6.3 billion, allowing investors to acquire its asset base at a significant discount, enhancing its investment appeal.
- Stable Dividend Yield: Macy's pays an annual dividend of nearly $0.77 per share, yielding over 3%, and recently raised the payout by 5%, providing investors with returns while waiting for recovery, despite being below pre-pandemic levels.
See More
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- Attractive P/E Ratio: Macy's P/E ratio stands at 10, having dipped to 7.5 in Q1 2026, indicating its stock is undervalued in the market, which has drawn interest from Buffett despite overall retail sector challenges.
- Sales Growth Recovery: Macy's achieved its strongest sales growth in four years during Q1 of fiscal 2026, with net sales rising and guidance for comparable sales now expected to increase between 0.5% and 1.2%, signaling a revival in company performance.
- Real Estate Asset Value: Macy's real estate holdings are estimated at $9 billion, while its market cap is only $6.7 billion, allowing investors to purchase its asset base at a significant discount, highlighting its potential intrinsic value.
- Dividend Yield Advantage: Macy's pays an annual dividend of nearly $0.77 per share, yielding about 3%, well above the S&P 500 average of 1%, and has recently increased its payout by 5%, indicating the company's ability to sustain and grow dividends, appealing to income-seeking investors.
See More
Kohl's Appoints Elliott Rodgers as COO
- Executive Appointment: Kohl's announced the appointment of Elliott Rodgers as Chief Operating Officer, effective September 9, reporting directly to CEO Michael Bender and overseeing operations across 1,200 stores in the U.S.
- Extensive Experience: With over 20 years in supply chain, technology, strategy, and finance, Rodgers previously served as COO at Foot Locker and held various executive roles at Ulta Beauty, showcasing his deep background in the retail sector.
- Operational Management Role: As the new COO, Rodgers will manage critical areas including global supply chain, distribution centers, procurement, and loss prevention, aiming to enhance Kohl's operational efficiency and market competitiveness.
- Stock Price Reaction: In after-hours trading on the NYSE, Kohl's shares fell 0.35% to $17.14, reflecting market caution regarding the new appointment, following a 4.76% decline during regular trading hours on the same day.
See More
Kohl's Appoints New Chief Operating Officer
- Executive Appointment: Kohl's (KSS) has appointed Elliott Rodgers as Chief Operating Officer, tasked with overseeing operations of 1,200 stores, aiming to further the company's strategic development.
- Background Experience: Prior to joining Kohl's, Rodgers served as COO at Foot Locker, where he managed critical areas such as technology, supply chain, procurement, customer care, and enterprise transformation, showcasing extensive management experience.
- Strategic Goals: Rodgers will assume his role in September 2025, reporting directly to CEO Michael Bender, and is expected to leverage his retail expertise to enhance Kohl's operational efficiency and market competitiveness.
- Industry Impact: This appointment reflects Kohl's commitment to improving operational management and market adaptability, potentially strengthening its position in the retail market moving forward.
See More
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- Media Industry Challenges: Thomson Reuters indicates that the media sector has been severely impacted by AI, leading to diminished confidence in future performance, which could adversely affect advertising revenues and market share.
- Xeris Biopharma Outlook: Xeris Biopharma Holdings emphasizes the significance of its injectable products, and despite facing market competition, its unique product positioning may present growth opportunities in the future.
- Nebius Stock Pullback: Once a favorite among investors, Nebius's appeal has waned due to a deteriorating market environment, prompting investors to reassess their investment strategies regarding the stock.
- Carnival Corporation Valuation: Carnival Corporation is viewed as an undervalued investment option, although analysts favor Viking for long-term performance, which may impact Carnival's market positioning and investor confidence.
See More
Activist Investor Pushes for Sale of Ashland Inc to Boost Share Price
- Increased Shareholder Pressure: Activist investor Ancora Alternatives has built a significant stake in Ashland Inc (ASH.N) and argues that a sale could boost the share price by at least 30%, demonstrating strong confidence in the company's future value.
- Background of Stock Decline: Since hitting a high in December 2022, Ashland's stock price has tumbled roughly 50%, now trading near $57.50, reflecting investor punishment for disappointing performance, with a market value of only $2.7 billion.
- Acquisition Potential Analysis: Ancora forecasts that a sale could push the stock price to at least $76, marking a 31% increase, indicating that the company's intrinsic value remains underappreciated amid current trading discounts and growth challenges.
- Possibility of Management Changes: Ancora is prepared to launch a proxy fight during the upcoming shareholder nomination window if constructive dialogue with management does not yield a resolution, aiming to add fresh leadership to the board to ensure proper fiduciary oversight.
See More
