Bank of America Corp. Downgrades Coach to Neutral (COH)
Coach (NYSE:COH) was downgraded by stock analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a report issued on Wednesday, AR Network reports. They currently have a $54.00 target price on the stock, down from their previous target price of $63.00. Bank of America Corp.’s price target suggests a potential upside of 11.23% from the stock’s previous close.
The analysts wrote, “We are downgrading Coach to Neutral as we now think the turnaround will take more time than we expected. While strong results in international, men’s and footwear are a positive and a good initial reaction to the new capsule collection is encouraging, all of these are too small to offset the weakness in the women’s handbag business. Coach reported F1Q14 EPS of $0.77, below our $0.79 estimate driven by lower than expected NA comps (-6.8%). Coach lowered its F2014 sales and OM guidance given ongoing traffic challenges. We are lowering our F2014 and F2015 EPS estimates to $3.49 and $3.86 from $3.85 and $4.42 to reflect our lower sales and margin forecast and our Price Objective to $54 (15x our calendarized F2014 estimate) to reflect our new estimates. We expect shares to remain range bound as it takes longer than expected for Coach to execute on its product turnaround given macro pressures and intense competition.”
Shares of Coach (NYSE:COH) traded down 3.09% during mid-day trading on Wednesday, hitting $48.55. 15,100,646 shares of the company’s stock traded hands. Coach has a 52-week low of $45.87 and a 52-week high of $62.26. The stock’s 50-day moving average is $53.42 and its 200-day moving average is $54.65. The company has a market cap of $13.688 billion and a P/E ratio of 13.88. Coach also was the target of unusually large options trading activity on Monday. Stock traders bought 23,805 call options on the stock. This represents an increase of 757% compared to the typical daily volume of 2,779 call options.
Coach (NYSE:COH) last released its earnings data on Tuesday, October 22nd. The company reported $0.77 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.76 by $0.01. The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter last year, the company posted $0.77 earnings per share. Coach’s revenue was down .9% compared to the same quarter last year. Analysts expect that Coach will post $3.79 EPS for the current fiscal year.
COH has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “hold” rating on shares of Coach in a research note to investors on Friday, October 18th. Separately, analysts at Canaccord Genuity downgraded shares of Coach from a “buy” rating to a “hold” rating in a research note to investors on Monday, October 14th. They now have a $62.00 price target on the stock, down previously from $65.00. Finally, analysts at Piper Jaffray Cos. initiated coverage on shares of Coach in a research note to investors on Tuesday, October 8th. They set a “neutral” rating on the stock. One analyst has rated the stock with a sell rating, nineteen have issued a hold rating and seventeen have assigned a buy rating to the company’s stock. Coach has an average rating of “Hold” and an average price target of $61.21.
Coach, Inc (NYSE:COH), is a marketer of fine accessories and gifts for women and men.
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