Coach (COH): 4 Reasons The Run Isn't Over - Wells Fargo
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Wells Fargo analyst, Ike Bucherow, reiterated his Outperform rating on shares of Coach (NYSE: COH) for 4 reasons noting that the 3.7% yield offers the company a cushion to the downside.
The four rallying points are:
1) COH has just started to take back market share from now larger rival KORS (COH has lost 9 points of share over the past 7+ years)
2) the analyst believes that one positive comp is the beginning not the end of the recovery,FP stores are 60% below peak productivity (meaning there is a long way to go should the brand continue to execute)
3) having just sold the Hudson Yards HQ (COH could have a $750 million net cash position by year end) leading to high ROI M&A over the next 12 months
4) the footwear business can be brought in-house next CY, leveraging the SW platform and creating a much more accretive footwear business for the COH brand
No change to the valuation range of $46 - $48.
Shares of Coach closed at $36.54 yesterday.
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