UPDATE: Morgan Stanley Reiterates Overweight on Michael Kors, Adds to Best Ideas List

In a report published Monday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Overweight rating and $71.00 price target on Michael Kors Holdings Ltd.

, and added the company to the Morgan Stanley Best Ideas list. In the report, Greenberger noted, “KORS is being added to Morgan Stanley's Best Ideas list, as we believe KORS' EPS achievability is one of Retail's best and is not adequately reflected in the stock's 22x CY14e P/E. We think now is an opportune time to buy, as we expect the May 29 EPS report to demonstrate the brand's earnings beat potential, catalyzing the stock higher. The February secondary offering has pressured the stock, which we think has led KORS to trade on non-fundamentals over the past 3 months. Once focus returns to fundamentals, we expect KORS to re-rate higher, toward its historical average of 30x.” Michael Kors Holdings Ltd. closed on Friday at $60.36.