Michael Kors Shares Moving Higher as Piper Jaffray Upgrades Following Strong Indications from 'Taking Stock With Teens' Survey
In a report published Wednesday, Piper Jaffray upgraded luxury retailer Michael Kors (NYSE: KORS) from Neutral to Overweight. The price target was raised from $73.00 to $90.00.
The firm's Erinn Murphy said the raised investment recommendation follows Piper's oft-cited semi-annual "Taking Stock With Teens" survey. Murphy noted a "staggering" move higher in "mindshare for Michael Kors across handbags, watches and now jewelry." The survey showed the company "was the No. 2 preferred handbag among both upper- and average-income consumers," garnering a 21 percent share within both of these income segments.
Murphy believes "Europe will be the next catalyst in the model which will likely support a pathway approaching $6/share in earnings over time."
With shares of Kors trading up 2.2 percent to $72.50 ahead of Wednesday's open, Piper Jaffray's new price target represents potential upside of about 24 percent.
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