Shares of Michael Kors KORS pushed below the all-important $50 level early Thursday afternoon following a mid-day research note from Citi's Oliver Chen. The stock is down more than three percent at last check.
The Citi analyst reduced estimates and his price target on Michael Kors shares from $68 to $60 while maintaining a Buy. Chen cited "lower 2H gross margin & comp assumptions given
incrementally cautious reads from our channel checks" and slightly increased clearance.
Citi now expects Michael Kors to report Q3 EPS of $0.43, down modestly from $0.45 previously. The firm's FY12 and FY13 EPS estimates were lowered from $2.35 and $1.73 to $2.25 and $1.66, respectively.
Despite the concern, Chen "believe sales trends
continue to be robustly better than others & brand/product innovation remains topnotch..." He is also attracted to Michael Kors' "premium positioning at value
prices, leading store and wholesale growth, a structured path to grow comps store
sales, and opportunities in Europe."
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in