Deutsche Bank Starts Coach (COH) at Hold; A Mixed Bag: Growth vs. Macro

Deutsche Bank initiates coverage on Coach (NYSE: COH) with a Hold. PT $66.00.

Deutsche analyst says, "We believe that COH's FY13 P/E of ~15x (17x FY12) fairly balances a strong LT growth story (currently only 6% share in the Chinese imported accessories market, negligible presence in Europe) with investor concerns about 2H luxury spend and sluggish global growth. On the back of +DD sales, scale from 36% US share, industry-leading margins, and a flexible business model, we look for avg. 3Y EPS growth of 16%, but also COH-specific risks including potential brand dilution from Factory growth."

For more ratings news on Coach click here and for the rating history of Coach click here.

Shares of Coach closed at $60.50 yesterday.

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