NEW YORK (TheStreet) -- Michael Kors (KORS) shares are flat in pre-market trading on Tuesday despite having its "buy" rating reiterated by analysts at Jefferies who also maintained the company's $100 price target.
The firm believes that the company's lack of promotion when compared to its high end handbag and accessory peers makes its high position in the space an even more impressive accomplishment.
"Our monthly online channel checks still show KORS as the least promotional amongst peers (excluding COH) though we note a modest increase in promotion, which we believe is most likely due to seasonality as we approach Holiday. We reiterate KORS as our top pick in the handbag/accessories space given its relatively low promotional cadence, attractive brand positioning, expanding market share and multople growth prospects," said the firm.
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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."