Nomura Lowers PT On Coach, Worried About Growth

In a research note released Thursday, Nomura analyst Robert Drbul lowered his price target on shares of Coach COH from $52 to $50. Drbul said that the firm is looking forward to hearing optimistic guidance from the company that will remove the high level of uncertainty that is continuously facing the company. The firm stated that it is expecting Coach to focus on the balance between margins and how it plans to optimize its store fleet, improved long-term gross margins, and the overall evolution of the Coach brand on a global scale. The analyst additionally said that they do not see a need to readjust gross margin estimates, and believes that Coach is committed to the dividend. Full-year 2014 EPS estimates are currently at $3.05 and full-year 2015 is being decreased from $2.75 to $2.60. Shares of Coach are down 31 percent year-to-date.