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Maxim Group Downgrades Michael Kors (KORS) to Hold

July 15, 2014 11:16 AM EDT
Get Alerts KORS Hot Sheet
Price: $37.92 --0%

Rating Summary:
    15 Buy, 25 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 10
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Maxim Group downgraded Michael Kors (NYSE: KORS) from Buy to Hold with a price target of $85.00 (from $109.00).

Analyst Rick Snyder said, "Our rating change is based on our belief that domestic sales have weakened to a greater degree than anticipated. Our checks indicate that this has led to increased markdown activity, which is likely to pressure gross margin. Our new price target of $85.00 emanates from applying a 0.80x PEG, from 1.0x previously, on our 2016 EPS estimate of $4.88. We believe that current concerns over Michael Kors' gross margin will lead to multiple contraction as investors lose confidence in their near-term growth prospects."

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 $85.67 yesterday.



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