Kohl's: Worth $75 Without Financial Engineering
- Kohl's has activists wanting the company to spin off the e-commerce division to unlock value.
- The company already has plans to grow the business and activists have yet to show how a full omni-channel business can operate as two different companies.
- The stock is absurdly cheap at 7x EPS targets and Kohl's will repurchase over 15% of the outstanding shares this year.
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-Acacia would likely be the lead investor with backing from Jeff Smith's Starboard Value, according to a Reuters report, which cited sources familiar.
-The report comes as Kohl's holder Macellum Advisors is pushing for changes including a sale, board changes. Macellum is a repeating a call for the company to make board changes or hire a bank to explore a potential sale.