Analysts Remain Bullish on Michael Kors Weeks After Hitting 52-Week Low

Michael Kors (NYSE: KORS) dropped to its 52-week low a few weeks ago after the company revealed in its second quarter earnings report that its comparable store sales failed to meet analysts’ expectations. However, the stock has since increased considerably after management has taken various initiatives to reignite its growth.

One initiative the company took was to move the Michael Kors headquarters from Hong Kong to London. Michael Kors COO explained the move, stating “We believe that Europe is the center of luxury brands and this move will better align us with our peers as we continue to expand our brand and presence globally.”

After a successful holiday season, Michael Kors received a Buy rating from Merril Lynch/Bank of America analyst Robert Ohmes in a report published today, December 29th. The analyst assigned the stock a $120 price target.

Ohmes believe Michael Kors share traffic appeared high in full price stores, outlets, and “in Macy's handbag, footwear, watch and fragrance shop-in-shops from Super Saturday to post-Holiday, especially when compared to peers.” In addition, “in Macy's, KORS continued to expand its menswear business, marked by new men's apparel and underwear shop-in-shops.” All in all, the analyst believes “KORS ‘innovative’ brand positioning gives the company the freedom to potentially become a dominant accessible luxury brand in multiple categories.”

In the past year, Ohmes has successfully made 24 ratings out of 33 total, earning a 73% success rate recommending stocks and a +9.5% average return per recommendation.

Michael Kors also received a Buy rating from Jefferies analyst Randal Konik with a $100 price target on December 22nd. The analyst believes Michael Kors’ European revenue will reach $1 billion in fiscal 2016 and $1.5 billion "over the next few years." In addition, Konik expects the company to open 20 new stores throughout Europe in the current year. As of now, Michael Kors is roughly halfway to its goal of running 200 stores in the European region, which Konik said is "gaining critical mass.”

Konik has successfully made 64 ratings out of 128 total over the past year, earning a 50% success rate recommending stocks and a +5.5% average return per recommendation.

On average, the top analyst consensus for Michael Kors on TipRanks is Moderate Buy.

To see more recommendations for Michael Kors, visit TipRanks today!