UPDATE: Citigroup Upgrades Coach to Buy on Good Risk/Reward
Citigroup upgraded Coach (NYSE: COH) from Neutral to Buy and maintained a $56.00 price target.
Citigroup analyst Oliver Chen wrote, "Our take is that COH stock has transitioned from a growth stock to value, & we're upgrading as we believe stock appropriately prices in caution & has good upside potential. We're upbeat on upside because we believe the Coach brand remains relevant, COH's plan to transition to a multi-category lifestyle brand will ultimately work, & free cash flow, absolute ROIC, net cash, return of funds, & COH's mgmt team remains top notch. COH has moved from a 20s-range P/E to 11.7x as comp sales have slowed from +DD in 2011 to -2% last quarter & op. margins have leveled off to ~31%."
Coach closed at $48.81 on Tuesday.
Latest Ratings for COH
|Jul 2016||Credit Suisse||Upgrades||Neutral||Outperform|
|May 2016||Stifel Nicolaus||Assumes||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.