Piper Jaffray Raises Price target on Coach (COH) Following a 2Q Beat.

Piper Jaffray reiterated an Overweight rating on Coach (NYSE: COH), and raised the price target to $38.00 (from $37.00), following the company's 2Q earnings report. The company met expectations for a (4%) North American retail comp and reiterated its top-line and operating margin guidance for the full-year. During the quarter, while Coach saw traffic declines, they were less worse sequentially. Conversion improved and average ticket was higher in the quarter.

Analyst Erinn Murphy commented, "Following Coach's Q2 earnings beat we are reiterating our Overweight rating on shares of COH. Importantly, the company met our expectations for a (4%) North American retail comp and reiterated its top-line and operating margin guidance for the full-year. While the overall premium handbag category was flat in the December quarter (vs. +LSD last quarter), we note Coach was able to take share sequentially, and comp'd positive in both the above $400 price category and the below $300 price point category. Management reiterated its confidence it can turn to positive comps in North America by Q4 of this year. With improving traffic and conversion, and upcoming product catalysts, we have increased conviction in our Overweight rating and we believe COH shares are setup nicely to outperform over the next 12-months."

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 $34.19 yesterday.

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