Michael Kors (KORS) Raising PT to $69 - Piper Jaffray
Piper Jaffray analyst, Erinn Murphy raised her PT on Michael Kors (NYSE: KORS) to $69 (from $67) after Q4 results came in ahead of expectations. No change to Overweight rating.
The Q1 guide disappointed due to pressures in domestic mall traffic and the decision to ratchet back wholesale handily, however, the analyst believes the near-term has been de-risked. Further, we believe the company is making the right choice to reduce its NA wholesale shipments for the health of the brand longer-term. Q1 comp guidance for down MSD assumes trends in June do not improve from current levels. Nonetheless, global growth (in Asia first, Europe second), new e-com platforms (EU) and a strong buyback should fuel EPS growth for the year. Beyond FY17, mgmt expects sales, margins and earnings to improve.
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Shares of Michael Kors closed at $45.55 yesterday.