UPDATE: Buckingham Research Upgrades Coach (COH) to Buy

(updated to add analyst comment)

Buckingham Research upgraded Coach (NYSE: COH) from Neutral to Buy with a price target of $58.00.

Analyst Scott Krasik lists four upside drivers:

1. core margins can expand to 22% - 24% by FY21 (from 19% currently)
2. accretion from the Kate Spade (KATE, NEUTRAL, $18.50) acquisition will exceed COH's initial guidance and investor expectations
3. COH will benefit from additional future acquisitions over the next few years and
4. investors will revalue the stock higher as COH is establishing itself as the only U.S. based multi-brand luxury holding company.

Also the handbag industry could improve over next 1 to 2 years as many participants reduce inventories according to a morning research note.

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 $46.71 Friday.

You May Also Be Interested In

• Freedom Broker Upgrades Walmart (WMT) to Buy
• Ferrovial SA (FER:SM) (FRRVF) Reiterated at Buy by UBS on Winning Bid For Tennessee Project
• DA Davidson Starts Everus (ECG) at Buy