UPDATE: Morgan Stanley Upgrades Coach to Overweight; Risks Priced In

Morgan Stanley increased its rating on Coach COH from Equal-weight to Overweight and introduced a $74 price target on shares. Morgan Stanley noted, "Risks look largely priced in after 1630 bps under-performance since Nov. vs. softlines. We forecast 55% 3-year EPS growth and think 4Q EPS (July 31) should provide a catalyst. COH's FY2 P/E has contracted 31% y/y and is below its 5-year avg. We see ~29% stock price upside and a 5:1 risk/reward." Coach closed at $57.35 on Wednesday.