In the battle between department stores,
was today's clear winner.
The value-oriented retailer was upgraded on Monday, sending shares of the company soaring 7.5% to $45.67 in morning trading.
Thomas Weisel Partners analyst Liz Dunn upgraded the stock to overweight from market weight, citing compelling merchandise at great prices.
"By focusing on offering value up front, they are giving customers an incentive to buy at the planned promotional price, and have significantly less clearance to work through at the end of the season," she wrote in a note on Monday.
Kohl's is also benefiting from the closure of Mervyn's. The company plans to open 36 stores acquired out of Mervyn's bankruptcy liquidation, putting Kohl's in new markets. The stores will open in the fall.
While the company has been posting same-store sales declines, the losses are less severe than those reported by competitors like
Last month Kohl's said
but the results still beat Wall Street expectations.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.