UPDATE: Credit Suisse Downgrades Coach to Neutral on Valuation, Competition

Credit Suisse reduced its rating on Coach

from Outperform to Neutral with a reiterated $63 price target. Credit Suisse noted, "Valuation Now Adequately Matches Risk/Reward. We are downgrading Coach to Neutral from Outperform. Recent share price performance (shares up 21.6% since reporting F4Q results versus the S&P 500's gain of 5.9%) has led to a meaningful rebound in the multiple. Shares are now trading at 15x on our CY13 EPS estimate of $4.14, a modest 10% discount to peers, which we view as appropriate in light of concerns regarding the company's relative maturity and competitive pressures in North America." Coach closed at $59.99 on Wednesday.