Canaccord Genuity joins KORS' fanbase, starting shares at buy, citing momentum that has made company "one of the fastest growing fashion accessories brands in the US." Firm says KORS offers products to consumers across different income demographics and has significant opportunities to sell through US department stores. Sees company on the path to double its global retail segment by F2015.
Canaccord Genuity initiated coverage on Michael Kors (NYSE: KORS) with a Buy rating and a price target of $82.00. Analyst Camilo Lyon thinks Michael Kors shop-in-shop conversion strategy is under-appreciated by the Street.
"Current estimates suggest the NA wholesale shop-in-shop doors will grow at an 11% CAGR, while non-converted doors will grow at 15%. We believe this understates the productivity lift opportunity by $300M/15c to sales/EPS in two years, effectively doubling the growth," said Lyon