UPDATE 1-Exclusive brands, cost cuts to help Kohl's: JP Morgan

March 27 (Reuters) - Kohl's Corp (KSS.N) is expected to continue to benefit from exclusive brands and a focus on cutting costs, said J.P. Morgan Securities, which raised its price target and earnings estimates on the mid-priced retailer.

"While some investors have chose to jump ship following a great run, we think Kohl's is just beginning to hit its stride and believe the stock has legs from here," analyst Charles Grom wrote in a note to clients.

Grom said the department store chain's strategy of partnering with brands that already have recognition seems to be paying off, and is a big reason behind traffic stabilizing in the past few weeks.

Kohl's, which recently signed a marketing deal with pop star Britney Spears, also has abundant store growth opportunities, said Grom, who raised his price target on the stock to $46 from $42.

The retailer has a renewed focus on sustainable cost cuts and is managing expenditures well, the analyst said.

"Kohl's mantra is 'cash is king' in this environment, which make sense," said Grom, who raised his 2009 earnings per share estimate for the company to $2.40 from $2.25.

Lower remodel costs and less costly Mervyns' openings have allowed the company to cut capital expenditures, the analyst said.

Kohl's said earlier it plans to open about 55 stores and remodel 51 others -- a majority of which will be former Mervyns locations, which it acquired after Mervyns went bankrupt last year.

Shares of the company closed at $43.04 Thursday on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)