PVH, Coach, Sequential Brands: Piper's Most Compelling Names Heading Into 36th Consumer Conference

The analysts commented, "Investor interest, as measured by one-on-one demand, has been the highest for PVH, COH and GIII/FL (tied) within our coverage. In fact, out of the 58 total companies presenting at our two-day event, PVH had the third greatest demand (behind JWN and W). From our perspective, the overall business climate in the U.S. continues to suffer from a traffic perspective and inventory remains elevated."

Related Link: Jefferies Has Further Confidence In Coach's Turnaround Story

Piper Jaffray said names like PVH and Coach are executing well and fit a "self-help" profile, while Sequential is the firm's small-cap growth idea.

The brokerage believes the second half still may hold uncertainty. However, the three favorites stand out with earnings potential at or better than the consensus. The analysts elaborated, "We are biased towards names with realistic (and not significantly back-end weighted) expectations for 2H. The median 2H earnings weighting in our group stands at 70 percent with names like GCO and GIII seeing >80 percent contribution in 2H."

Piper Jaffray justified its favorites, stating each of the three have an upward earnings bias. The brokerage is also looking into company-specific catalysts like new product launches, M&A environment, department store order books, retail traffic environment, basketball trends, casual vs. athletic footwear cycles and handbag environment.

At Time Of Writing...

• Sequential Brands was down 0.69 percent at $8.68.
• Coach was up 0.26 percent at $39.24.
PVH was down 0.27 percent at $96.94.