Michael Kors Hit 52-Week Low, Bank Of America Sees Brand As Top Pick
Michael Kors stock continued to drop during its 52-week low, weeks after the company announced its second quarter earnings report. The fashion brand reported that its store sales failed to meet analysts’ expectations. But that didn’t stop Bank of America from setting a $120.00 target price on shares of Michael Kors Holdings (NASDAQ:KORS) stock, as reported on Monday by the Legacy.
Other analysts have also commented on the Michael Kors stock. For example, analysts at Mizuho set an $82.00 price target on the stock on Monday, Dec. 22. Meanwhile, analysts at Oppenheimer initiated coverage on shares of Michael Kors Holdings at an $80.00 price target in a research note on Wednesday, Dec. 17. Michael Kors Holdings currently has an average rating of “Buy” and average target price of $98.00, according to the report.
“Michael Kors Holdings (NASDAQ:KORS) opened at 74.93 on Monday. Michael Kors Holdings has a 52 week low of $68.25 and a 52 week high of $101.04. The stock has a 50-day moving average of $74.53 and a 200-day moving average of $78.57. The company has a market cap of $15.344 billion and a P/E ratio of 19.79.”
Even though the Michael Kors brands has interest from many analysts, it’s still failing in some parts of the world. The company has been looking to move its headquarters from Hong Kong to London. Michael Kors’ COO explained the decision behind the move.
“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.”
Bank of America analyst Robert Ohmes has a lot of faith in the Michael Kors brand. He believes that the brand’s shares were high when it came to its outlets and luxury retail stores and “in Macy’s handbag, footwear, watch and fragrance shop-in-shops from Super Saturday to post-Holiday, especially when compared to peers.”
Ohmes continued, “in Macy’s, KORS continued to expand its menswear business, marked by new men’s apparel and underwear shop-in-shops.” He believes, “KORS ‘innovative’ brand positioning gives the company the freedom to potentially become a dominant accessible luxury brand in multiple categories.”
Michael Kors has been “out of fashion” for some time, according to a report on the Inquisitr. Despite its success in Europe and Asia, this high-end brand has been trying to reinvent itself. The Michael Kors brand is hoping that it has the ability to keep up with the current trends, despite its disappointing sales, and to regain itself as a luxury brand.
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