Michael Kors (KORS) Receives a Buy from Canaccord Genuity

By Jason Carr

In a report released today, Camilo Lyon from Canaccord Genuity maintained a Buy rating on Michael Kors (NYSE: KORS), with a price target of $84. The company’s shares closed yesterday at $65.60, close to its 52-week high of $70.

Lyon observed:

“KORS reported much stronger than expected FQ1 results with adj. EPS of $1.32 trouncing our/consensus 93c/95c estimates. The beat was broad based with revenue (+7c), gross margin (+19c), SG&A (+10c), and tax (+5c) all contributing to the beat. Total comp growth was flat in Q1 (in line with our est. and guidance) but importantly were positive in NA and Asia, offset by expected weakness in Europe, consistent with our expectations.”

According to TipRanks.com, Lyon is a 3-star analyst with an average return of 2.2% and a 48.5% success rate. Lyon covers the Consumer Goods sector, focusing on stocks such as Canada Goose Holdings Inc, Columbia Sportswear, and Sequential Brands.

Currently, the analyst consensus on Michael Kors is a Moderate Buy with an average price target of $74.23.

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Based on Michael Kors’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $44.1 million. In comparison, last year the company had a net profit of $126 million.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock.

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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. The firm operates its business through three segments: Retail, Wholesale and Licensing.