01:30 PM EDT, 08/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $3 to $11, based on 7.3x our FY 27 (Jan.) EPS estimate, well below the company's three-year average forward P/E multiple of 12.7x. However, we note the company's volatile earnings in recent years that have distorted its forward multiple. We believe shares will trade in line with department store peers, at around 8x normalized EPS. We raise our FY 26 EPS estimate by $0.20 to $0.70 and lower our FY 27 EPS estimate by $0.50 to $1.50. KSS posted normalized Q2 FY 26 EPS of $0.56 vs. $0.59 the prior year, $0.29 above consensus estimates on revenues of $3.55B (vs. $3.73B in Q2 FY 25) and $177M above estimates. Comparable sales declined 4.2%, though management indicated performance came in ahead of expectations. In our opinion, the company is losing share to off-price retailers and is also battling tariffs, which could lead to a slower rebound in earnings than anticipated. We think valuation is out of control and would take advantage of the 150% gain in shares since April.