The consumer “is all about accessories” this year and that has made Michael Korsthe must-have stock for investors who want a piece of the luxury retail business, Jefferies analyst Randy Konik told CNBC.
On Tuesday, Jefferies initiated a $35 price target and a “buy” rating on Michael Kors , which went public at $20 a share in mid-December. At the time, the $20 price was considered by some analysts to be inexpensive.
Now, Konik considers the stock as much of a premium-priced product as the offerings in a Kors store window.
"Investors want to pay a premium" for growth that went from under $400 million a few years ago to $1.2 billion. With that kind of growth rate, "premium evaluation is warranted," the analyst said.
Konik said the company, with 203 stores as of Oct. 1 in high-end malls and high-visibility locations on city streets, wants to open 400 more in North America, which the analyst said is feasible.
"The CEO, John Idol, has done a great job positioning the brand as an aspirational luxury business," he said. He "has widened the consumer net for the company... both domestically and globally."
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Neither Randy Konik nor his company own Michael Kors shares, but Jefferies was a co-manager of the company's initial public offering.