Ahead of the Bell: Baird downgrades Kohl's on share price

NEW YORK—Shares of Kohl's Corp. fell in premarket trading Monday after a Robert W. Baird analyst downgraded the department store operator, calling its stock overvalued.

J. David Cumberland lowered Kohl's to "Neutral" from "Outperform" in a client note. The stock has risen 19.5 percent since the company reported March sales were down more than 15 percent. The analyst said the climb was probably driven by a solid performance in April.

Cumberland said Kohl's results may stabilize in the coming quarters based in part on new merchandising initiatives and inventory management. He said the stock would be more attractively valued in the lower $40s.

Kohl's shares lost 48 cents at $50.17 before the opening bell. On Friday, shares closed at $50.65.