The analyst firm lowered its 2015 EPS estimates for the department store operator to $4.60 a share from its previous estimate of $4.65 a share. BMO also lowered its 2016 EPS estimates for Kohl's to $5.18 a share from $5.25 a share.
BMO analysts said the lower price target and EPS estimates were due to the store's traffic and sales falling short of expectations.
"Despite the EPS beat and results that were in line with internal expectations, the stock traded down ~13% following the print, as 1.4% first quarter comp and flat traffic were lower than expected following 3.7% comp and 2% traffic growth in 4Q14," the analysts wrote. "The results led to concerns about the slope and consistency of the recovery in sales and traffic."
TheStreet Ratings team rates KOHL'S CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate KOHL'S CORP (KSS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."