Coach Receives a Buy from Oppenheimer

By Ryan Adsit

Oppenheimer analyst Anna Andreeva reiterated a Buy rating on Coach (NYSE: COH) today and set a price target of $50. The company’s shares opened today at $36.33.

Andreeva commented:

“Despite the environment, COH’s turnaround is proceeding nicely, with third consecutive quarter of positive North America comps (store comps up 4%, 11-points acceleration on 2-year stack) at improved gross margins (up both in outlet and full- price). While full-price continues to lead, outlet (~2/3 of sales and profits) turned positive, despite increased promotional pressure in this channel (we continue to see both KORS/KATE discounting deeper) as COH ‘s focus on innovation as opposed to just value is working (collaborations like PacMan and Bears over Christmas driving traffic/exceeding plan).”

According to, Andreeva is a 3-star analyst with an average return of 2.6% and a 42.6% success rate. Andreeva covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.

Currently, the analyst consensus on Coach is Strong Buy and the average price target is $50, representing a 37.6% upside.

In a report issued on January 24, Piper Jaffray also reiterated a Buy rating on the stock with a $44 price target.

Coach’s market cap is currently $10.09B and has a P/E ratio of 20.92. The company has a book value ratio of 3.6962.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is neutral on the stock.

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Coach, Inc. engages in manufacturing of women’s handbags, belts and retails custom made clothing. Its products include footwear; wearable such as scarves, jackets, gloves, and hats; jewelry such as bracelets, necklaces, rings, and earrings; travel bags which include luggage, travel kits, and valet trays; sunwear; watches; and fragrance which includes eau de perfume spray, eau de toilette spray, purse spray, body lotion, and body splashes. The company operates through three geographical segments: North America, International and Other. Coach was founded by Dawn Hughes in 1941 and is headquartered in New York, NY.