UBS Downgrades Kohl's On Inflation Jitters

UBS analyst Jay Sole downgraded Kohl's Corp KSS to Sell from Neutral with a price target of $38, down from $66, implying a 22.5% downside.
Sole noted inflation has become a big soft lines theme over the past two months, which warrants a thesis change on Kohl's.
The analyst believed inflation, along with the combined impact of lapping fiscal stimulus, a likely industry-wide inventory build, and rising interest rates, will pressure the company's sales and margins much more than the market expects.
Sole specified earnings misses will "catalyze a down stock move" for Kohl's.
Price Action: KSS shares are trading lower by 3.53% at $47.29 in premarket on the last check Friday.