Swiss banking giant UBS has turned neutral on Kohl's (NYSE:KSS) after Thursday's disappointing trading update from the department store.
Shares took a tumble yesterday, after the department store operator reported unexpected slumps in its fiscal second-quarter revenue and profit as consumers delayed back-to-school shopping due to a shift in tax holidays from July to August.
UBS abandoned its 'buy' stance, citing concerns about the company's efforts to turn around the business.
It has revised current full-year earnings per share (EPS) estimates down to US$4.30 from US$4.58 previously, putting it five cents below the median forecast of analysts covering the stock.
"We think KSS dropped enough hints on its [analysts' conference] call that even the low end of the $4.40-$4.60 guide will be a stretch," UBS said.
UBS has hacked its price target back to US$58 from US$72.