Michael Kors (KORS): LT Story Intact - Jefferies

November 11, 2016 7:16 AM EST
Get Alerts KORS Hot Sheet
Price: $43.23 -0.76%

Rating Summary:
    8 Buy, 29 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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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.

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 $51.76 yesterday.

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