Coach Inc. Upgraded By Cowen & Co., Price Target Raised To $38

By Tonya GarciaMarketWatch Pulse

Coach Inc. was upgraded to outperform from market perform at Cowen & Co., which raised its price target to $38 from $35. The bank said it has "greater conviction" that the handbag, apparel and accessories company can deliver positive same-store sales by its fiscal fourth quarter because of its marketing, planned promotions and wider gift offerings. The same-store sales estimate for its second quarter, to be released in January, is a 4.2% decline, according to FactSet. Coach merchandise, produced by new creative director Stuart Vevers, is well-received, spans across men's and women's items and all channels, and hits key price points, starting below $300, the bank said. Store remodels are also making for a better experience, Cowen wrote in a note. Coach shares are down 17.2% for the year to date while the S&P is down 1.8%. See also: Coach upgraded to overweight at Piper Jaffray, price target raised to $37

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