Michael Kors price target lowered to $80 from $95 at Jefferies Jefferies lowered its price target for Michael Kors shares to $80 after cutting its estimates for the company for the second time in two weeks. To reflect further concerns on promotions, Jefferies lowered its FY15 estimate to $3.60 from $3.90 and FY16 estimate to $4.00 from $4.60. Even with shares pulling back over the past few days, Jefferies says risk remains skewed to the downside. It keeps a Hold rating on the stock.
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.