NEW YORK (AP) -- Kohl's climbed more than 3 percent on Wednesday as an analyst raised the department store operator's rating and price target, partly because of its improving revenue trends and attractive stock price.
THE SPARK: Deutsche Bank's Charles Grom increased the chain's rating to "Buy" from "Hold" and boosted its price target to $62 from $49.
THE ANALYSIS: Grom said in a client note that Kohl's traffic improved a bit in August, as did its revenue at stores open at least a year that came from non-credit card customers. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Last month Kohl's Corp. reported that revenue at stores open at least a year increased 3.4 percent in August, easily beating Wall Street's forecast for a 1.9 percent rise.
Grom also believes that Kohl's is making the right moves by tweaking its marketing and promotions to appeal more to shoppers that don't have credit cards and adding new products in its juniors, denim and beauty categories.
SHARE ACTION: Shares of Kohl's Corp., based in Menomonee Falls, Wis., added $1.81, or 3.5 percent, to $53.83 in afternoon trading. The stock has traded between $42.72 and $56.66 over the last year.
