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UPDATE: Citigroup Upgrades Coach to Buy on Good Risk/Reward

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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

Mar 2015Renaissance CapitalDowngradesBuyHold
Mar 2015JP MorganMaintainsOverweight
Mar 2015Standpoint ResearchDowngradesBuyHold

View More Analyst Ratings for COH
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Upgrades Analyst Ratings


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