Piper Jaffray Lifts Estimates and Price Target On Coach (COH) to $39; Handbags Top For Teens

Piper Jaffray raised estimates and their price target on Coach, Inc. (NYSE: COH) from $32 to $39m reiterating their Overweight rating.

The firm cited, "what appears to be broadbased improvement in overall department stores traffic and sales trends, as well as improvement at comparable retailers of discretionary apparel and accessories."

The firm's Q1 EPS estimate remains unchanged at $0.42, which is better than the consensus of $0.39. Q2 was raised to $0.70 from $0.65, which is better than the consensus of $0.67. FY10 is $2.07, which is better than the consensus of $1.92.

The firm also said their proprietary survey points to handbags gaining mindshare among teen girls. They said upper-middle income teen girls ranked handbags as their No. 1 favorite accessory. They commented, "While we do not ask specifically about which brands teen purchase specifically, we believe Coach's recent Poppy launch could be positively contributing to an increased preference toward handbags."

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