Kohl's: Morgan Stanley maintains Underweight, PT raised to $9 from $5.

Kohl's: Morgan Stanley maintains Underweight, PT raised to $9 from $5.

Morgan Stanley has maintained its underweight rating on Kohl's Corporation (KSS) stock, raising its price target from $5 to $9 per share. The brokerage firm cited concerns over the retailer's operational challenges and a cautious outlook on the company's ability to recover profitability in the near term.

According to Morgan Stanley's latest research report, the retailer's recent strategic initiatives, such as its partnership with Google, have not been sufficient to significantly improve its financial prospects. The firm noted that while the partnership is a step in the right direction, it is unlikely to deliver meaningful financial benefits in the near term Google partnership ’unlikely to move needle’ for PayPal stock: Morgan Stanley^[1].

The brokerage also highlighted that Kohl's has been facing operational headwinds, including supply chain disruptions and increased competition from e-commerce players. These challenges have led to a gradual recovery in profitability, which Morgan Stanley expects to continue in the near term.

Despite the cautious outlook, Morgan Stanley acknowledged that the retailer's strategic initiatives, such as its partnership with Google, could have a positive impact on its long-term growth prospects. However, the firm emphasized that these benefits are unlikely to be realized in the near term.