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Citi: Michael Kors A Buy After Versace Acquisition

Citi: Michael Kors A Buy After Versace Acquisition
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Global fashion brand Michael Kors Holdings Ltd (NYSE: KORS)'s recent acquisition of Versace sent the American-based company's stock lower by 9 percent — and investors should buy the dip, according to Citi. 

The Analyst

Citi's Paul Lejuez upgraded Michael Kors from Neutral to Buy.

The Thesis

Michael Kors' acquisition of Versace comes at a time of momentum for the company, which will rebrand itself as Capri, Lejuez said in the upgrade note.

Kors has shown a track record of impressive beat-and-raise earnings reports, the analyst said. Ivestors should have confidence in the company's ability to improve Versace's sales productivity and margins, he said. 

The Street is not pricing in any upside potential from Versace, which offers investors a positive risk-reward profile at current levels, according to Citi. 

Price Action

Kors shares were trading down 1.57 percent at $66.99 at the time of publication Thursday. 

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Photo by Bahar/Wikimedia. 

Latest Ratings for KORS

Jan 2019Wells FargoMaintainsMarket PerformMarket Perform
Nov 2018OppenheimerDowngradesOutperformPerform
Nov 2018MacquarieInitiates Coverage OnOutperform

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Posted-In: Apparel Citi luxury Paul Lejuez VersaceAnalyst Color Upgrades Analyst Ratings Best of Benzinga


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