Market Overview

Coach Has This Turnaround In The Bag; Analyst Predicts Stock To Outperform

Coach Has This Turnaround In The Bag; Analyst Predicts Stock To Outperform

Coach Inc (NYSE: COH) has pulled off a three-year turnaround and now turns its attention to integrating its Kate Spade acquisition, prompting one analyst to predict double-digit earnings growth with a compound annual growth rate of 10 percent over the next five years.

Bernstein analyst Jamie Merriman rated Coach at Outperform and set a price target of $51. It was up 1.18 percent at $41.28 at last check.

Kate Spade Looking Good

“We believe the repositioning of Coach has been successful and will continue to drive positive comps,” Merriman wrote. “There is clear opportunity to grow the Kate Spade brand, as well as drive synergies and deliver faster sales and earnings growth for the group.”

“After a pullback in the stock at year end results, we believe investors now have another opportunity at the story, as we see room for multiple expansion as the Kate integration proceeds,” Merriman added.

Under Victor Luis, who became CEO in 2014, Coach’s restructuring included closing the bottom performing 70 stores, a reinvestment in the band’s presence in department stores and a reduction in discounting. Handbags priced higher than $400 a pop, for example, jumped from 16 percent of sales in 2013 to 45 percent this year.

Related Link: Coach’s Turnaround: Is There Room In This Bag For More Upside?

Image Credit: By Shoshanah (My new Coach Bag!) [CC BY 2.0 (], via Wikimedia Commons

Latest Ratings for COH

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: BernsteinAnalyst Color Long Ideas Price Target Reiteration Top Stories Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

ESTCCanaccord GenuityMaintains150.0
AVAVCanaccord GenuityMaintains98.0
OKTACanaccord GenuityMaintains250.0
SNOWCanaccord GenuityMaintains275.0
RCMSVB LeerinkMaintains26.0
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