NEW YORK (AP) -- Kohl's stock rose to a multiyear high on Monday after an analyst raised the department store operator's rating and price target due to increased confidence in its turnaround strategy.
THE SPARK: Michael Binetti of UBS boosted Kohl's Corp. to "Buy" from "Neutral" and increased its price target to $69 from $54.
THE ANALYSIS: Binetti said in a client note that he's more confident in Kohl's turnaround strategy, as the Menomonee Falls, Wis., company plans to refocus on national brands, lower inventories, increase beauty and accessory sales, and improve its loyalty program.
The analyst said he believes that the turnaround plan could lead to adjusted earnings growth in 2014 and 2015. While Binetti estimates a slight decline in sales at stores open at least a year in the fourth quarter, he pointed out that several factors could drive better results, including Kohl's plans to open on Thanksgiving, easy gross-margin comparisons and favorable weather conditions.
SHARE ACTION: Up $1.77, or 3.1 percent, to $58.62 in afternoon trading. Earlier in the session, the stock climbed to $58.93, its highest point since April 2010.