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UPDATE: Credit Suisse Initiates Coverage On Michael Kors

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In a note released before the market open on Tuesday, Credit Suisse analyst Christian Buss initiated coverage on Michael Kors (NYSE: KORS) with an Outperform rating and announced a $107 price target.

Buss wrote, "We view Michael Kors as a global brand in the making, with a multiyear runway for growth to $7B in revenue and $6.50 in EPS."

Looking at how Kors will achieve this growth, Buss pointed to his estimates for double-digit distribution expansion and at least mid-single digit growth to like-for-like sales.

In contrast, Buss anticipates a 300 basis point reduction in operating margin due to investments aimed to bring the company's infrastructure up to a point where it can meet demand.

Finally, Buss's model suggest 2.5+ percent free cash flow yield and he is forecasting share repurchases to begin repurchasing up to $500 million shares annually by fiscal 2016.

Latest Ratings for KORS

DateFirmActionFromTo
Aug 2015Wolfe ResearchInitiates Coverage onPeer Perform
Aug 2015OppenheimerMaintainsPerform
Aug 2015Piper JaffrayDowngradesNeutralUnderweight

View More Analyst Ratings for KORS
View the Latest Analyst Ratings

Posted-In: Christian Buss Credit SuisseAnalyst Color News Price Target Initiation Analyst Ratings

 

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