Michael Kors Analyst Roundup Following Q3 Results

Michael Kors Holdings Ltd (NYSE: KORS) reported Q3 results Thursday. The stock fell amid a downbeat forecast and closed at $69.77, down 2.26 percent.

Analysts weighed in following the earnings release. Below are some highlights along with current ratings and price targets.

Morgan Stanley - Overweight, $105 price target

“Revenue mix optics drove KORS' 4 percent pullback, in our view. All in, it's hard to argue with the absolute strength of the results. North American sales remain strong and Europe's growth impresses as the base builds. At 14x '15 EPSe, valuation implies a highly unlikely earnings catastrophe. KORS grew sales +30 percent y/y to $1.3B+ while maintaining a stable gross margin at very high levels (60.9 percent). Clearly the brand remains in demand and achieved outstanding top line growth without buying sales through promotions.”

Topeka - Buy, $120 price target

"With growth in 3Q of 73 percent, it would have added 380 bps to the comp, but is impacting both traffic and sales in the stores. We believe they need to be looked at together to get a true view of how the brand is performing-- and it continues to perform very well, with no close competition, in our view. Also, newly expanded retail stores, which are excluded from the comp, would have added another 70 bps. While NA comps are slowing, they are still robust by almost any standard, and KORS is seeing very strong international growth--constant currency comps in Europe +29.9 percent and +54.4 percent in Japan."

Mizuho - Buy, $80 price target

“4Q guidance also implies continued merchandise margins stability with FY15 gross margin flattish Y/Y. Thus, the majority of the EBIT margin drop is stemming from SG&A investments in new openings, shop in shop conversions, corporate headcount, and eCommerce build-out. While these investments will likely pressure EBIT margin in upcoming years, we believe it will better enable KORS to capitalize on International and eCommerce demand.”