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UPDATE: Barclays Starts Coach (COH) at Equalweight

March 18, 2014 6:40 AM EDT
Get Alerts COH Hot Sheet
Price: $39.90 --0%

Rating Summary:
    19 Buy, 20 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 5 | New: 36
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(Updated - March 18, 2014 1:49 PM EDT)

Barclays initiated coverage on Coach (NYSE: COH) with an Equalweight rating and a price target of $52.00.

"We believe initiatives under way are a positive move for the brand, and look forward to the results of updates to stores, product and marketing. However, we also believe that for a company of this scale, with more than 550 stores in North America and 460 internationally, it could be more than a year to reflect changes across the full network," said analyst Joan Payson.

"We have been impressed by international platforms and growth in Asia. We expect Europe to be a meaningful opportunity as the company now directly controls the region and is growing off a base of only $40 mm in sales at retail. We think brand awareness in Asia exceeds that of U.S. peers and is an advantage for expansion into Europe," she added. "We see limited potential for positive catalysts in the near term, but would become more constructive upon news of improvements in store conversion and traffic levels; closures of underperforming stores; and positive indicators from the European rollout. We see strong value in the company's industry-leading free cash flow yield and track record of returning cash to shareholders."

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 $49.44 yesterday.


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