Thursday, October 10, 2013

Michael Kors (KORS) handbags, accessories trendy among teens

Michael Kors (KORS) is rapidly gaining popularity with its high-end handbags, watches and jewelry among the younger set.

Piper Jaffray found in its latest Taking Stock With Teens survey a "staggering" jump in "mindshare" for the former "Project Runway" judge's accessories. It also found Kors handbags were the second most preferred among both average- and upper-income consumers, taking a 21% share in both brackets.

As a result, Piper Jaffray analyst Erinn Murphy upgraded Kors to overweight from neutral and the price target to $90 from $73. She thinks Europe will be the next "catalyst" that could help drive earnings to near $6 a share going forward. Analysts expect $2.76 a share for fiscal 2014.

Kors has soared 260% since its stock debuted at $20 a share in December 2011.

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