Market Overview

Are Improving Trends Enough To Send Coach Bears Back Into Hibernation?

Share:
Are Improving Trends Enough To Send Coach Bears Back Into Hibernation?

Coach Inc (NYSE: COH) is set to report first-quarter earnings on May 2, and at least two Wall Street forms are bullish on the handbag giant headed into the big day.

UBS's Take

According to UBS analyst Michael Binetti, the Coach bull case revolves around a return to growth in outlet sales.

“We think [full-price] store momentum has continued behind improved product/marketing, and if outlets accelerate, we think COH could be poised for more material EPS upside ahead,” Binetti explained.

Binetti said Coach received a critical head start on the competition when it began its brand-reset efforts several years ago, prior to the downturn in the handbag business. As a result, the strength of Coach’s brand has been on the rise, while other brands have struggled. Binetti believes this edge will give Coach unique pricing power compared to rivals Kate Spade & Co (NYSE: KATE) and Michael Kors Holdings Ltd (NYSE: KORS).

Baird's Perspective

Baird analyst Mark Altschwager expects Coach will reiterate its 2017 guidance when it reports earnings, but potential M&A deals could drive earnings upside in coming quarters.

“With more-visible earnings drivers (AUR tailwinds, SG&A leverage), steady execution, and a healthy dividend, we see attractive risk/reward at current levels,” Altschwager explained.

Baird maintains an Outperform rating and $47 price target for Coach, while UBS has a Buy rating and $47 price target for the stock.

Related Links:

Wall Street Knows What Teens Like

Analyst Sees Kate Spade Takeover Price Target In The $18-21 Range
__________
Image Credit: By Tinton5 (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons

Latest Ratings for COH

DateFirmActionFromTo
Nov 2017SusquehannaInitiates Coverage OnPositive
Oct 2017BairdMaintainsOutperform
Oct 2017BuckinghamMaintainsBuy

View More Analyst Ratings for COH
View the Latest Analyst Ratings

 

Related Articles (COH)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Guidance Price Target Previews Reiteration Best of Benzinga

Latest Ratings

StockFirmActionPT
MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
NVDASusquehannaMaintains625.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com