Michael Kors price target lowered to $98 from $107 at Citigroup Citigroup lowered its price target for Michael Kors (KORS) to $98 after its national handbag survey indicated a "lack of newness" and that the company failed to meet plan in 17% of responses versus 1% previously. Citi says Kors continues to be number one in handbags and it keeps a Neutral rating on the stock. Its survey indicated results at Coach (COH) are fairly consistent overall, with an improvement in stores exceeding plan. Citi has a Neutral rating on Coach.
Michael Kors fundamentals intact, says Morgan Stanley Morgan Stanley said Michael Kors concerns of increased inventory and promotions impacting gross margins is overdone. The firm believes incremental promotions reflect some normalization and not brand decay and eComm checks suggest inventory is under control. Morgan Stanley views Kors' fundamentals as intact and valuation as compelling. Shares are Overweight rated.