Collins Stewart Starts Coach (COH) at Neutral; Macroeconomic Weakness, Slowing SSS, & Concerns to Men's Line
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Price: $39.90 --0%
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Collins Stewart initiates coverage on Coach (NYSE: COH) with a Neutral. PT $67.00.
Collins analyst says, "We have some concerns regarding the men’s fashion and recent stylistic changes within the women’s line. In addition, there appears to be less visibility surrounding the factory business, as continued macroeconomic weakness would likely have a greater impact on sales. We believe there is a sizable global opportunity for COH, specifically in China, given the continued SSS strength the company has generated since opening its first stores in FY09. Based on our FY12 estimates, shares trade at 15x EPS, 16x FCF, and 9x EV/EBITDA. Although from today’s share price we believe COH stock has 15% upside potential, we are initiating with a Neutral as global headlines will likely create volatility in near-term trading of luxury stocks."
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 $56.92 yesterday.
Collins analyst says, "We have some concerns regarding the men’s fashion and recent stylistic changes within the women’s line. In addition, there appears to be less visibility surrounding the factory business, as continued macroeconomic weakness would likely have a greater impact on sales. We believe there is a sizable global opportunity for COH, specifically in China, given the continued SSS strength the company has generated since opening its first stores in FY09. Based on our FY12 estimates, shares trade at 15x EPS, 16x FCF, and 9x EV/EBITDA. Although from today’s share price we believe COH stock has 15% upside potential, we are initiating with a Neutral as global headlines will likely create volatility in near-term trading of luxury stocks."
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 $56.92 yesterday.
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