Michael Kors (KORS): Cutting PT, Maintaining Overweight Rating - Piper Jaffray

August 11, 2016 7:02 AM EDT
Get Alerts KORS Hot Sheet
Price: $43.40 +1.97%

Rating Summary:
    8 Buy, 29 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Piper Jaffray analyst, Erinn Murphy, reiterated her Overweight rating on shares of Michael Kors (NYSE: KORS) following Q1's print. The analyst stated "Our OW rating is principally on the belief that the stock is inexpensive (10x next year with an 11% FCF yield), there has been consistent discipline with utilizing the balance sheet, capex is coming down & the company is cleaning up its distribution & is working toward pulling back on promotions. While we recognize this transition does not come overnight and there are still several global macro headwinds (such as Europe which saw a more pronounced deceleration this quarter), we believe the company has the optionality on the balance sheet to protect earnings during a time where EBIT is admittedly moderating towards the low-20% range."

The price target of $64.00 was cut from $69.00 as she rolled forward to FY18 estimates from FY17 and reduced the multiple to 13x from 15x.

For an analyst ratings summary and ratings history on Michael Kors click here. For more ratings news on Michael Kors click here.

Shares of Michael Kors closed at $48.71 yesterday.

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