Analyst Raises Kohl's Price Target

NEW YORK (AP) — An analyst boosted his price target on Kohl's Corp. on Friday, saying the department store operator is still besting its primary rivals and gobbling up market share.

Daniel Binder of Jefferies & Co. was pleased with Kohl's September results. On Thursday the Menomonee Falls, Wis.-based chain reported sales at stores open at least a year climbed 5.5 percent for the month, which was better than the 2 percent to 4 percent increase that Binder predicted.

This sales figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Kohl's also lifted its third-quarter profit guidance to a range of 52 cents to 54 cents per share, up from 40 cents per share to 44 cents. Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, expect quarterly net income of 55 cents per share.

Binder raised Kohl's price target to $69 from $58 and reiterated a "Buy" rating. He also increased the company's 2010 earnings forecast to $2.99 per share from $2.81 per share and lifted the 2010 estimate to $3.61 per share from $3.22 per share.

Wall Street analysts predict a profit of $2.88 per share in 2010 and $3.28 per share in 2011.

Kohl's stock fell 7 cents to $59.89 in morning trading.