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.
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.