Coach’s Price Target Revised Downward after Mixed Fiscal 4Q17 Results

Wall Street’s reaction to Coach’s 4Q results

Coach’s (COH) weak guidance has led to a host of target price revisions on Wall Street. Credit Suisse lowered its price target for COH to $51 from $55, while Cowen and Company lowered it to $46 from $53, and Deutsche Bank reduced it to $51 from $54. Instinet cut its target to $53 from $55, while J.P. Morgan reduced its target to $44 from $48, and Jefferies lowered the price to $42 from $45.

However, all of the above-mentioned brokerage houses have maintained their recommendations on the stock.

Coach’s Price Target Revised Downward after Mixed Fiscal 4Q17 Results

Ratings and recommendations

Coach is covered by 34 Wall Street analysts. Of these, 71% recommend a “buy” for the stock, while 26% recommend a “hold,” and 3% suggest a “sell.” On a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”), Coach is rated a 2.1.

MKM Partners, Canaccord Genuity, and Deutsche Bank are among the brokers who recommend a “buy” for the stock, while Jefferies recommends a “hold.”

Notably, Coach has a better rating than Michael Kors (KORS), which has a rating of 3.0, with 14% “buys,” 9% “sells,” and 77% “holds.”

Coach’s stock could gain 24% over the next year

Coach now has an average price target of $50.46, indicating an upside potential of about 24% over the next 12 months. By comparison, Kors’s stock price is predicted to rise only ~3% over the next year.

Investors looking to invest in Coach through ETFs can choose the First Trust RBA Quality Income ETF (QINC). Coach has a weight of 3.2% in QINC.