Gordon Haskett Research Advisors on Aug.10 upgraded Kohl's Corp. to Hold from Reduce based on the company's current valuation in the market, while increasing the company's price target to $37 from $36.

In their report, Gordon Haskett analysts noted that Kohl's shares fell 8% after the company released earnings results Aug. 10, putting it at a share price reduction of 22% year-to-date. They noted that the new price target of $37 represented a downside of less than 5% from the stock's current trading price. Kohl's shares closed at $39.50 on Aug. 10, down 5.8%, as the broader department store sector tumbled amid concerns about the industry's long-term fundamentals.

The price target increase was based on the company's second-quarter EPS result of $1.24, which exceeded Gordon Haskett analysts' in-line estimate of $1.19. In addition, comparables for the balance of the year appear "modestly better," the team said, which further supported their price target increase.

The department store operator's second-quarter guidance looks "achievable," the analysts said. The company expects EPS of $2.92 to $2.97 for the year, with normalized EPS ranging between $3.60 and $3.65, according to S&P Capital IQ.

The team raised its full-year 2017 EPS estimate for the company to $3.75 from $3.65 and lifted its 2018 estimate to $3.55 from $3.45.

"All told, while conceptually the department store names could be re-rated lower in the coming quarters, we think sentiment, which is worse than 2008 levels has reached a bottom," the team said.