"KATE is a growth company with potential to scale channels, geographies and product categories to reach goal of $4 billion in sales over time (at retail), more than double current levels," analysts said.
As the fifth largest handbag manufacturer in the US, the company should be well positioned to capture additional market share, the firm added. However, analysts noted that this comes at a time when the handbag industry is beginning to show signs of deceleration, following 4-5 years of superior growth.
The New York City-based company is a handbag and accessories manufacturer and retailer.
Shares of Kate Spade are decreasing by 0.92% to $24.90 at the start of trading on Friday.
Separately, TheStreet Ratings team rates KATE SPADE & CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KATE SPADE & CO (KATE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation."