Michael Kors Gets a Buy Rating from Oppenheimer

By Jason Carr

Oppenheimer analyst Anna Andreeva maintained a Buy rating on Michael Kors (NYSE: KORS) today and set a price target of $90. The company’s shares opened today at $61.95.

Andreeva noted:

“Backing out a wider loss at CHOO ($0.12/share vs. $0.07 guidance, on additional marketing) and higher tax rate ($0.10), KORS beat F4Q18 EPS estimates by $0.20+ (~40%), driven by better sales (first flat North America comp since ’15) and gross margins (EBIT margins 300 bps better vs. guide). F1Q19 EPS expected up 16%, with more modest growth rest of the year (just 4% for FY19), primarily on CHOO’s seasonality (more dilutive in 2Q and 4Q); we think conservative, given accelerating momentum in handbags & accessories (watches & jewelry is the only negative category in Retail). Maintaining above-guide valuation back at 12x too punitive for what we view as beat & raise set-up into next year.”

According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 6.0% and a 51.0% success rate. Andreeva covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Children’s Place, and Urban Outfitters.

Currently, the analyst consensus on Michael Kors is Strong Buy and the average price target is $82, representing a 32.4% upside.

In a report released yesterday, Canaccord Genuity also reiterated a Buy rating on the stock with a $84 price target.

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Michael Kors’ market cap is currently $10.38B and has a P/E ratio of 19.95. The company has a Price to Book ratio of 5.00.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Michael David Kors, the Hon Chair & Chief Creative Off of KORS sold 246,590 shares for a total of $15,115,588.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Michael Kors Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors trade name. The company operates its business through three segments: Retail, Wholesale and Licensing.