Market Overview

Coach At 52-Week Highs Following Analyst Upgrade

Share:
Coach At 52-Week Highs Following Analyst Upgrade

Coach Inc (NYSE: COH)’s amazing turnaround this year continues; Buckingham Research Group analyst Scott Krasik upgraded the stock from Neutral to Buy with a price target raised 24 percent from $45 to $58.

Coach shares spiked 2.1 percent to $47.70 quickly after Monday’s open before pulling back slightly to around $47.30.

The stock is up nearly 35 percent this year and is back to levels last seen in April 2014.

Buckingham’s Bull Case

Krasik said Coach has significantly outperformed the SPDR S&P Retail (ETF) (NYSE: XRT) this year, which is down 9.6 percent, and expects the trend to continue through the year.

The analyst believes core margins can expand by more than 22 percent by fiscal 2020 from the current 19 percent, and the company will benefit from additional acquisitions in the long term (see Krasik's track record here).

In the near term, Coach’s acquisition of Kate Spade & Co (NYSE: KATE) can exceed management’s initial guidance and investor expectations.

Krasnik also expects that, over the next 12–24 months, the handbag sector will become less promotional as the big players reduce inventory.

Investors should look forward to Coach’s fourth quarter results driving positive sentiment and upward multiple revaluation.

Related Links:

Cramer: Coach Is Now Out Of The 'Doghouse'

Benzinga's Top Upgrades, Downgrades For June 26, 2017
_______
Image Credit: By Preston Smalley (http://www.flickr.com/photos/prestons/4113771768/) [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], 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 + KATE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Upgrades Price Target Technicals Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
UBERRBC CapitalMaintains50.0
UBERMizuhoMaintains42.0
WIXJMP SecuritiesMaintains363.0
UBERBarclaysMaintains43.0
CVIJP MorganInitiates Coverage On22.0
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