Michael Kors Investors: Piper Jaffray Analysts Say They're Moving To The Sidelines

In a report published Wednesday, Piper Jaffray analyst Erinn E. Murphy downgraded shares of

to Neutral from Overweight with a price target slashed to $70 from a previous $89 given a more cautious stance on North American comp trajectory over the next six to 12 months. Murphy stated that store checks and web analytic studies suggests a deceleration in domestic search activity for the brand which dipped into negative territory for the first time on a quarterly basis. In fact, over the last three quarters, North America comps have dipped from 21 percent to six percent." Murphy continued that the company's long-term growth opportunities haven't changed and that Europe remains "strong" while Asian growth opportunities are "emerging quickly." "While the Michael Kors brand continues to enjoy share gains domestically and increasingly so in international markets (with still runway to go), we believe the stock is likely to trade in a range until North American comps stabilize," Murphy concluded.