Analyst Update: Jumei, Deckers Outdoor, Michael Kors

Analysts adjusted their ratings on Jumei International Holding Ltd (ADR) (JMEI), Deckers Outdoor Corp (DECK), and Michael Kors Holdings Ltd (KORS)

Kirra Fedyszyn
Nov 30, 2015 at 12:17 PM
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Analysts are weighing in today on beauty retailer Jumei International Holding Ltd (ADR) (NYSE:JMEI), apparel maker Deckers Outdoor Corp (NYSE:DECK), and luxury retail interest Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's brokerage notes on JMEI, DECK, and KORS.

  • JMEI is having a surprisingly great day on the charts, in spite of getting a price-target cut to $10 at Goldman Sachs. The new target is still a premium to today's price, as Jumei International Holding Ltd was last seen trading at $9.28, up 13% from Friday's close. The U.S.-traded shares hit an all-time low of $7.51 just two weeks ago, but have since been skimming along emerging support in the $8 area. Today's big gains could be the result of some skeptics hitting the bricks, as more than one-third of JMEI's available float is currently sold short -- accounting for more than three days of trading, at typical volumes. What’s more, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ, OMX PHLX (PHLX), the stock's 10-day put/call volume ratio stands at 8.19 -- meaning more than eight puts have been bought for each call over the last 10 days of trading. This reading is just one percentage point shy of an annual high.

  • Canaccord Genuity cast a skeptical eye at outdoor apparel makers today, lowering its price target on DECK to $72 from $75, while also cutting price targets on sector peers Lululemon Athletica inc. (NASDAQ:LULU) and Columbia Sportswear Company (NASDAQ:COLM). The brokerage maintains a "buy" rating on Deckers Outdoor Corp, however. The stock has dropped 3.9% in response, last seen at $48.16 -- not far off from its two-year low of $45.14, set less than two weeks ago. But while some are banking on more downward motion -- nearly 22% of the stock's total float is sold short -- options traders seem uninterested in puts. DECK boasts a Schaeffer's put/call open interest ratio (SOIR) of 0.57, which ranks higher than only 2% of readings in the past 52 weeks. That means traders have rarely been so call-heavy at any time in the last year.

  • KORS got a boost today, last seen up 1.2% at $43.01, as Cowen and Company increased its price target to $46 from $43. Michael Kors Holdings Ltd has lost approximately 43% of its value year-to-date, and has struggled to break out of its sideways pattern since late May, earning it a fair amount of lukewarm analyst attention lately. It looks like options traders are hoping that Black Friday sales may boost the shares in the not-too-distant future, though. The stock's SOIR of 0.52 is lower than almost three-quarters of readings from the past year. Still, analysts are hesitant. Only four brokerages following the firm give it a "buy" or better rating, compared to 15 "holds" and one "strong sell."
For other stocks in analysts' crosshairs, read Analyst Upgrades: Alibaba Group Holding Ltd, Fitbit Inc, and Microsoft Corporation and Analyst Downgrades: American Eagle Outfitters, Lululemon Athletica inc., and Valeant Pharmaceuticals Intl Inc.

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