Management guidance will heavily influence KSS stock price trajectories. Store closures and omni-channel investment are expected to reshape long-term revenue streams. As Reuters points out, meme stocks are often heavily shorted . The rise in share prices for these stocks force investors who had bet against the stock to sell their shares to limit their losses. The bottom line: We are not making any change to our $40 fair value estimate and view the shares as very undervalued. Although we rate Kohl’s as having no moat, we do not think the current valuation reflects its prospects for sales and operating margin improvement over the next few years. The retail macro trend, including shifting demographics, is directly impacting KSS stock price. Analysts forecast gradual recovery if loyalty programs drive repeat purchase behavior.
