NEW YORK (TheStreet) -- Shares of Michael Kors (KORS) closed lower on Thursday after CLSA initiated coverage of the stock with a "sell" rating and $45 price target.
The firm sees lack of drivers large enough to reaccelerate sales at the apparel, handbag and accessories company, the Fly reports.
While CLSA believes estimates and guidance for 2017 look achievable, the firm said Wall Street's 2018 outlook is "too bullish."
Additionally, the firm expects a number of challenges to increase as Michael Kors matures in its largest markets, while expenses create expense deleverage, the Fly noted.
The firm also began coverage of Ralph Lauren (RL) and Coach (COH) stocks with "buy" ratings.