Goldman Sachs Upgrades Coach and Nordstrom; GS Downgrades J.C. Penney and Dollar Tree

Goldman Sachs is out with a note on several retailers this morning including Coach (NYSE: COH), Nordstrom (NYSE: JWN), J.C. Penney (NYSE: JCP) and Dollar Tree (Nasdaq: DLTR).

Goldman Sachs upgraded Coach from "neutral" to "buy.
Goldman said although Coach has risen over 200% from its 52-week low, GS still thinks Coach has some room to rise. Goldman thinks Coach is undervalued and believes COH offers a long-term growth opportunity. Goldman increased Coach's price target from $37 to $42.

Also, Goldman upgraded Nordstrom from Neutral to Buy. As the economy improves, Goldman expects the high-end consumer to recover and to return to stores like Nordstrom. With Goldman's upgrade of Nordstrom, it also increased JWN's price target from $39 to $41.

Now, for the Goldman retail downgrades:

Goldman downgraded J.C. Penney from Neutral to Sell. J.C. Penney appeals to the lower to middle income consumer. Goldman says JCP obsessive focus on margins will impact J.C. Penney's revenue. Goldman Sachs lowered J.C. Penney's price target from $36 to $32.

Goldman downgrades Dollar Tree from to Neutral. It lowered DLTR's price target from $54 to $52.