Michael Kors (KORS): LT Story Intact - Jefferies
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Jefferies analyst, Randal Konik, reiterated his Buy rating on shares of Michael Kors (NYSE: KORS) and raised his price target to $75. The analyst acknowledged that F'2Q results have their puts and takes, but the long term story remains intact. KORS should benefit from rising AURs and an inflection in the investment cycle in coming quarters.
The analyst's buy thesis hinges on 5 thinks:
1) accessories category dominance
2) AUR inflection as small bag trend is lapped
3) GM oppty. from less wholesale promos
4) int'l growth
5) high-potential categories, incl. men's.
The $75 PT is based on 15.0x FY'18E EPS and ~10.6x EV/EBITDA, below historical levels and in-line with the group average.
Shares of Michael Kors closed at $51.76 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Earnings
Related EntitiesJefferies & Co, Randal Konik
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