Michael Kors (KORS): Cutting PT, Maintaining Overweight Rating - Piper Jaffray
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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.
Shares of Michael Kors closed at $48.71 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesPiper Jaffray, Earnings, Erinn Murphy
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