Coach Upgraded At Credit Suisse On Brand Strength, Possible Acquisitions

By Markets MarketWatch Pulse

Coach Inc. shares rose 2% in Wednesday premarket trading after the accessories company was upgraded to outperform from neutral at Credit Suisse. Credit Suisse analysts believe the core of Coach's business has stabilized and it has regained brand strength with improved product design and materials, fashion shows and engagement with the fashion press. Analysts believe acquisitions could be in Coach's future. "We believe there is compelling opportunity for a long-term acquisition narrative to not only drive earnings power, but also help Coach develop into an American luxury brand house, creating a diverse portfolio to help mitigate specific category risk long-term," analysts wrote in a note. Coach acquired Stuart Weitzman in May 2015. Coach shares are up 40.3% for the past year while the S&P 500 Index is up 4.9% for the same period.

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.