Wedbush's Corinna Freedman Thinks That Kate Spade & Co Is A Buy
Speaking on CNBC's Fast Money, Corinna Freedman of Wedbush Securities said that Tuesday's sell-off in Kate Spade & Co (NYSE: KATE) was an overreaction and that this is a great opportunity to buy the stock.
Kate Spade fell 25.39 percent on Tuesday and it closed at $29.00 after the company reported earnings.
Freedman explained that the reason behind the sell off was a line in the presentation that said that the company is potentially pushing its EBITDA margin goal from fiscal year 2016 to fiscal year 2017. The management didn't say that it is unattainable, they just said that there is a potentiality. Kate Spade reported a revenue growth of 55 percent and it had same store square footage growth of 40 percent.
When compared to Michael Kors Holdings (NYSE: KORS) Kate Spade is in a better place than Kors was in its trajectory. Corinna Freedman is a buyer of the stock because the core story hasn't changed.
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