Coach Lowered to Buy at Stifel Nicolaus (COH)
Coach (NYSE:COH) was downgraded by analysts at Stifel Nicolaus to a “buy” rating in a research report issued to clients and investors on Friday. They currently have a $47.00 price objective on the stock, down from their previous price objective of $65.00. Stifel Nicolaus’ target price points to a potential upside of 31.69% from the stock’s previous close.
The analysts wrote, “Yes, we have had a Buy on COH; we want to remind you of that as you read further. We had thought COH had the opportunity to reset its brand higher and, given strong ROIC characteristics of the accessories business, this would drive renewed interest from investors. We were essentially wrong on the pace at which these conclusions were reached at the company. That means more damage was done and the reset of expectation has to be that much more significant. But, now one looks at a COH model with vast sales drops and pure spending increases expected. This is potentially compelling over time and so we stick with Buy.”
Shares of Coach (NYSE:COH) opened at 35.69 on Friday. Coach has a one year low of $35.00 and a one year high of $59.58. The stock’s 50-day moving average is $40.9 and its 200-day moving average is $48.3. The company has a market cap of $9.785 billion and a price-to-earnings ratio of 11.95. Coach also saw unusually large options trading on Tuesday. Investors bought 17,506 call options on the stock. This represents an increase of approximately 238% compared to the average volume of 5,177 call options.
Coach (NYSE:COH) last released its earnings data on Tuesday, April 29th. The company reported $0.68 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.61 by $0.07. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same quarter last year, the company posted $0.84 earnings per share. Coach’s revenue was down 7.4% compared to the same quarter last year. Analysts expect that Coach will post $3.05 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Goldman Sachs cut their price target on shares of Coach to $30.00 in a research note on Friday. They now have a “sell” rating on the stock. Separately, analysts at William Blair downgraded shares of Coach from an “outperform” rating to a “market perform” rating in a research note on Friday. Finally, analysts at Stifel cut their price target on shares of Coach from $65.00 to $47.00 in a research note on Friday. They now have a “buy” rating on the stock. Two research analysts have rated the stock with a sell rating, twenty-two have assigned a hold rating and five have assigned a buy rating to the company’s stock. Coach has an average rating of “Hold” and a consensus price target of $46.50.
Coach, Inc (NYSE:COH) is a marketer of accessories and gifts for women and men.
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