Coach Inc. stock was upgraded to buy from hold at Jefferies on Tuesday with analysts arguing that the luxury accessories maker’s turnaround is not being fully appreciated by the market. The move is “based on visible green shoots in the business which gives us confidence that transformation initiatives are taking hold & fundamentals are bottoming,” analysts wrote in a note. “Survey results show COH is starting to attract more new customers at a faster rate than any churn to the legacy customer base.” Jefferies is expecting the company’s remodel to help it return to positive growth. North American remodels along are expected to add 20 cents to 50 cents to earnings per share in the next three to five years, they wrote. Shares were not yet active in preamrket trade, but are down 15% in the year so far, while the S&P 500 has gained 2%.
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