Market Overview

Wedbush Reiterates Neutral Rating, $54 PT on Coach on Lowered 3Q EPS

Related COH
Deutsche Bank's Mall Checks Suggests An 'Underwhelming Holiday Start'
Luxury Update: Morgan Stanley Still Loves Michael Kors Despite 50% Year-To-Date Decline
WisdomTree MidCap Dividend ETF (DON) November Summary (Seeking Alpha)

In a report published Monday, Wedbush analyst Corinna Freedman reiterated a Neutral rating and $54.00 price target on Coach (NYSE: COH).

In the report, Freedman noted, “We are lowering our Direct comp for COH from -4% to -5%, which negatively impacts our EPS estimate by ~$0.01. We believe the shift in pricing strategy at the outlet stores from 20-40% off coupons to hard discounting at 50% off, while coincident with other incrementally aggressive promos observed in the outlet channel by other brands, is likely a response to weak outlet mall traffic, which we attribute to inclement weather, payroll tax increases and perhaps delayed tax refunds which likely impacts the outlet shopper disproportionately. We continue to believe that COH is over-indexed to the outlets and Direct comps are likely more sensitive to outlet traffic trends.”

Coach closed on Friday at $50.41.

Latest Ratings for COH

Oct 2015Cantor FitzgeraldMaintainsHold
Oct 2015SusquehannaInitiates Coverage onPositive
Oct 2015Wells FargoAssumesOutperform

View More Analyst Ratings for COH
View the Latest Analyst Ratings

Posted-In: WedbushAnalyst Color Reiteration Analyst Ratings


Related Articles (COH)

Get Benzinga's Newsletters