Morgan Stanley Sees Multiple Challenges Ahead For Coach

In a report published Monday, Morgan Stanley analyst Kimberly C. Greenberger reiterated an Underweight rating and $36.00 price target on

. In the report, Morgan Stanley noted, “COH's 10-Q confirmed what we feared: North America's gross margin sequentially worsened and given continued promotions due to sluggish sales trends, further deterioration is probable, in our view. Although intl growth remains a bright spot, higher SG&A expenses temper the benefit. Reiterate U/W.” Coach closed on Friday at $41.99. Shares are down over one percent at $41.51 in Monday's trading session.