Kate Spade (KATE) Bullish Stance Reiterated at Sterne Agee

Sterne Agee analyst Ike Boruchow reiterated a Buy rating and $35 price target on Kate Spade (NYSE: KATE) following solid Q4 results.

Boruchow commented, "KATE delivered a breath of fresh air this morning, posting a robust Q4 beat (28% comp vs. Street's 13-14%), while providing a 2015 guide roughly in line with investor expectations. More importantly, management is taking the right steps to narrow the focus of the company - with plans to shutter the struggling Saturday/Jack concepts (combined lost $30 million LY). The 28% Q4 comp demonstrates KATE's strong momentum, and the company's various strategic initiatives are building a healthier business for the long-term. All told, with momentum building, the business focus narrowing and most major overhangs (holiday performance, 2016 margin goals, Saturday) now eliminated, we remain bullish on KATE shares."

The firm raised Q4/FY14 EPS estimates to $0.28/$0.29 (from $0.24/$0.25). 2015/2016 estimates are unchanged at $0.58/$0.95.

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 $29.73 yesterday.

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