Coach (COH): 4 Reasons The Run Isn't Over - Wells Fargo

October 4, 2016 7:48 AM EDT
Get Alerts COH Hot Sheet
Price: $36.23 -0.14%

Rating Summary:
    21 Buy, 24 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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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.

For an analyst ratings summary and ratings history on Coach click here. For more ratings news on Coach click here.

Shares of Coach closed at $36.54 yesterday.

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