Goldman Sachs has revised its price target for Kohl's (KSS, Financial), dropping it significantly from $7.50 to $4, while maintaining a Sell rating on the stock. This adjustment comes as Goldman adopts a more conservative stance on the U.S. apparel and softlines sector, amid emerging economic challenges.
The bank's economists have also downgraded their U.S. GDP growth forecast for 2025, projecting a reduction to 0.5%, a steep decline from the earlier estimate of 2.5% for 2024. The likelihood of a recession has been raised to 45%, reflecting apprehensions around prevailing market volatility and rising geopolitical tensions.
Despite not fully factoring in a potential recession into its projections, Goldman Sachs warns that the current economic landscape, compounded by higher tariff rates, may exert pressure on earnings. This caution underlines the firm's revised expectations and reflects broader concerns impacting the market outlook.
