Shares of Kohl’s Corporation (KSS) retreated more than 3% during yesterdays trading session after Citigroup downgraded the stock to “Neutral” from “Buy” with a price target of $75 due to concerns over insufficiently strong traffic.
Kohl’s shares closed lower for a second consecutive trading session in New York on Thursday. The stock went down 3.22% ($2.44) to $73.28, after touching an intraday low at $72.86, or a price level not seen since June 5th ($71.66).
Shares of Kohl’s Corporation have risen 35.13% so far in 2018 compared with a 4.07% gain for the underlying index, S&P 500 (SPX).
In 2017, Kohl’s Corp’s stock surged 9.82%, thus, it underperformed the S&P 500, which registered a 19.42% return.
“Outside of a major announcement of their partnerships expanding (which could help traffic), Kohls still has a challenge to drive traffic on its own”, Citi analyst Paul Lejuez wrote in a client note, cited by CNBC.
“Overall traffic (measured by transactions) was down in the first quarter excluding the benefit of the shift in weeks. This was tolerable at $60 to $65. But with the stock at about $76, we believe the risk reward is balanced”, he added.
The analyst stressed on Kohl’s efforts to form partnerships, including the one with Amazon, in order to retain clients, which probably drove the rally in the department store operators shares last month.
“The company is in the process of testing partnerships with grocery stores with its standard to small initiative. It also has the ongoing partnership with Amazon in 86 stores. Both of these initiatives seem promising and we believe it is possible the Amazon partnership could be expanded”, Lejuez also noted.
“But it also seems that the market may already be assuming the partnership grows, leaving more risk to the downside if it does not.”
According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Kohl’s Corporation’s stock price, have a median target of $74.00, with a high estimate of $115.00 and a low estimate of $45.00. The median estimate is a 0.98% surge compared to the closing price of $73.28 on June 14th.
The same media also reported that 9 out of 20 surveyed investment analysts had rated Kohl’s Corporation’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Kohl’s stock are presented as follows:
R1 – $73.51
R2 – $73.74
R3 (Range Resistance – Sell) – $73.97
R4 (Long Breakout) – $74.67
R5 (Breakout Target 1) – $75.48
R6 (Breakout Target 2) – $75.81
S1 – $73.05
S2 – $72.82
S3 (Range Support – Buy) – $72.59
S4 (Short Breakout) – $71.89
S5 (Breakout Target 1) – $71.08
S6 (Breakout Target 2) – $70.75
By using the traditional method of calculation, the weekly levels of importance for Kohl’s Corporation (KSS) are presented as follows:
Central Pivot Point – $75.04
R1 – $81.57
R2 – $85.39
R3 – $91.92
R4 – $98.46
S1 – $71.22
S2 – $64.69
S3 – $60.87
S4 – $57.06