UPDATE: Canaccord Genuity Upgrades Coach to Buy on Discount to ROIC

Canaccord Genuity raised its rating on Coach

from Hold to Buy with a reiterated $71 price target. Canaccord Genuity commented, "COH shares have declined 10% YTD versus the S&P 500 index +11%, the RLX index +20%, and the luxury peer group +16%. We believe investors overreacted following COH's report of weakness in its N.A. factory business in Q4. The stock's current multiples of 14x F2013E EPS and 8x F2013E EV/EBITDA provide investors with an attractive entry point in our view. … COH's 58% ROIC is three times higher than the retail group's average. . We estimate ROIC will improve to 65% by F2017." Coach closed at $54.84 on Monday.