Things may be turning around for Kohl’s , and investors should scoop up shares while they’re still cheap, according to Citi. The bank upgraded the retailer to buy from neutral. It also raised its price target on shares to $22 from $14, implying 53% upside from Friday’s close “This is an ‘everything has a price’ call for a company that (despite its operational challenges and difficult competitive landscape) is achieving attractive [free cash flow], resulting in a favorable risk/reward,” analyst Paul Lejuez said in a note to clients. Kohl’s has contended with declining sales for years, largely due to consumer shopping trend shifts and macroeconomic pressures. The company’s top line fell in 2022, 2023, 2024 and 2025. Over the past five years, its stock has lost roughly three-quarters of its value. KSS 5Y mountain Shares have fallen more than 70% over the past five years. The company unveiled a turnaround strategy about three years ago that may be yielding fruit. Last week, the retailer posted its best quarterly comparable sales in four years, causing its shares to rise 20% in the trading session following its first-quarter earnings report. Citi’s LeJuez expects the firm to continue demonstrating its growing financial strength, despite its outstanding debts — a fact that should prompt investors to reward the retail stock. Cash flow “can’t be ignored,” Lejuez wrote. “While they have seen some ups and downs over the past several years, last year they achieved [free cash flow] of $1BN.” Citi projects that Kohl’s will produce free cash flow nearly equal to its current market capitalization of roughly $1.6 billion in 2026 and 2027. The bank’s call goes against consensus on Wall Street. Of the 14 analysts covering Kohl’s, just two have a strong buy on the stock. Seven analysts have a hold rating on the retail name, while five have a sell on it, LSEG data shows.
