UPDATE: Canaccord Genuity Downgrades Coach on Downside Near-Term Risk

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In a report published Monday, Canaccord Genuity analyst Laura Champine downgraded the rating on
CoachCOH
from Buy to Hold, and lowered the price target from $65.00 to $62.00. In the report, Canaccord Genuity noted, “We expect Coach will report a U.S. (70% of total sales) SSS decline of 6% on top of +6% when it reports Q3 results in the next few weeks. Traffic trends appear to be deteriorating, and we believe Coach will be hard-pressed to maintain its leading 30% market share with the current product in stores. We expect fast-growing rival MIchael Kors will continue to gain ground. Consensus expects 30% top-line growth for KORS in F2014 versus our estimate for OCH at +3%. Given the limited near-term visibility, we are downgrading shares of Coach to HOLD from Buy.” Coach closed on Friday at $54.59.
Posted In: Analyst ColorDowngradesAnalyst RatingsCanaccord GenuityLaura Champine
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