Need A Reason To Buy Michael Kors? UBS Offers 8

UBS turned bullish on Michael Kors Holdings Ltd KORS after a dive into multiple aspects of the luxury fashion company's business.

Analyst Jay Sole upgraded Michael Kors Holdings from Neutral to Buy with a price target lifted from $76 to $80.

Sole named eight factors behind UBS' bullish stance on Michael Kors. (See his track record here.)

They are:

A survey of millennial handbag customers found the Michael Kors brand commands the highest favorability among 33 brands and has been steadily improving in ranking since 2015.
The brand is benefiting from good near-term sales momentum within the direct-to-consumer channel.
Michael Kors boasts a higher overall rating among employees compared to its competition based on a study of Glassdoor ratings. This implies the company is "functioning well," and this is not fully appreciated by the market, Sole said.
The market isn't pricing in Jimmy Choo and Versace's clear drivers of EBITDA growth in Michael Kors' stock price.
Encouragingly, the company's recently acquired Versace brand had more likes on Instagram than any other luxury brand with the exceptions of Gucci and Dior.
Google Search trends suggest Versace's brand is benefiting from recent momentum.
Handbag pricing trends are "getting less bad" with few big brands selling many items north of $500.
Geospatial data points to decreasing competition as industrywide store count closures accelerate.

Michael Kors shares were trading higher by 1.64 percent at $58.30 at the time of publication Friday.

Photo by See-ming Lee/Wikimedia.