NEW YORK (TheStreet) -- Shares of Michael Kors Holdings (KORS) are up 0.67% to $71.90 in pre-market trading despite being removed from Goldman Sachs' Americas conviction "buy" list today with a six-month price target lowered to $95 from $143.
Stock performance of the global lifestyle brand signals a bearish view, analysts said.
"The 2015 second quarter EPS report delivered some negatives versus our expectations, but we believe these had already been discounted by the stock heading into results" analysts said, adding, "These include a slower U.S. growth story and more significant retail margin compression."
"We lower out-year EPS to reflect a moderated multiyear view of sales and margins," analysts added, saying, "With shares trading near $71, we believe they embed a view that the U.S. growth story has peaked, an overly bearish view in the light of category tailwinds and KORS's attractive industry position."
Yesterday, the company reported that net income rose 42% to $207 million, or $1 a share, for the 2015 second quarter, up from $145.8 million, or 71 cents, a year earlier. Analysts had projected earnings of 89 cents, according to Bloomberg.
Revenue climbed 43% to $1.1 billion.
Despite increased earnings and revenue, comparable-store sales rose 16% in the quarter, while analysts estimated growth of almost 19%, according to Consensus Metrix, Bloomberg reported, adding that the results renewed fears that a slowdown is under way.
Separately, TheStreet Ratings team rates MICHAEL KORS HOLDINGS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICHAEL KORS HOLDINGS LTD (KORS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: KORS Ratings ReportKORS data by YCharts