Kate Spade Upgraded as Wells Fargo Predicts Comeback for BrandBy
Stock has been in ‘penalty box’ following weak results
Handbag maker has potential for strong growth, analyst says
Kate Spade & Co. was upgraded by Wells Fargo & Co. analyst Ike Boruchow, who sees the handbag maker’s sales and profit margins improving in the second half of the year.
The Kate Spade brand remains healthy, despite investors putting the stock into the “penalty box” following disappointing results, Boruchow said in a report. He raised his recommendation on the shares to outperform, the equivalent of a buy, from market perform. Boruchow also boosted his price target to as much as $24, up from $16 to $18.
Kate Spade “has the potential for strong top-line growth, margin expansion potential and continues to be a healthy brand, particularly in a challenging environment,” he said. “We believe this is not fully appreciated in the valuation.”…
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