Michael Kors (KORS): Buy Ahead of Tomorrow's Earnings Call - Piper Jaffray

Piper Jaffray analyst, Erinn Murphy noted that shares of Michael Kors (NYSE: KORS) have been controversial on the heels of the major reports such as Macy's and Nordstrom. With shares trading at a P/E of 9x next year and with sentiment skewing highly negative, she believes downside in shares is more limited at these levels. On the call, the company should disclose Q1 and FY17 guidance. The analyst believes that KORS represents a compelling entry point for a global brand--particularly given the balance sheet metrics. Shares are trading at a 10% FCF yield. As of the last quarter, the company had $700M in cash in hand and had already repurchased 10% of the stock ($560M remaining).

No change to Overweight rating or $67 PT.

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 $41.79 yesterday.

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