UPDATE: Barclays Starts Kate Spade (KATE) at Overweight
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Price: $18.49 --0%
Rating Summary:
7 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
7 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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(Updated - March 18, 2014 1:21 PM EDT)
Barclays initiated coverage on Kate Spade (NYSE: KATE) with an Overweight rating and a price target of $50.00.
"We have been impressed by the company's committed multi-year process of trimming the brand portfolio to focus investment upon the highest growth opportunities, and see the remaining Kate Spade business as having broad potential going forward. We believe the monobrand growth trajectory, combined with leveraging scale, a rationalized expense base and declining interest costs, implies a three year earnings CAGR of ~75%. As a result, we see current valuation levels, which reflect a PEG of 0.8 in the context of an industry average of 1.0-1.2, as compelling," said analyst Joan Payson.
"We view Kate Spade as having significant white space for growth, and believe plans to develop the brand reflect a differentiated strategy and commitment to preserving the "luxury" element of the brand," she added.
For an analyst ratings summary and ratings history on Kate Spade click here. For more ratings news on Kate Spade click here.
Shares of Kate Spade closed at $38.96 yesterday.
Barclays initiated coverage on Kate Spade (NYSE: KATE) with an Overweight rating and a price target of $50.00.
"We have been impressed by the company's committed multi-year process of trimming the brand portfolio to focus investment upon the highest growth opportunities, and see the remaining Kate Spade business as having broad potential going forward. We believe the monobrand growth trajectory, combined with leveraging scale, a rationalized expense base and declining interest costs, implies a three year earnings CAGR of ~75%. As a result, we see current valuation levels, which reflect a PEG of 0.8 in the context of an industry average of 1.0-1.2, as compelling," said analyst Joan Payson.
"We view Kate Spade as having significant white space for growth, and believe plans to develop the brand reflect a differentiated strategy and commitment to preserving the "luxury" element of the brand," she added.
For an analyst ratings summary and ratings history on Kate Spade click here. For more ratings news on Kate Spade click here.
Shares of Kate Spade closed at $38.96 yesterday.
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