Unfortunately for Coach Inc NYSECOH investors, the stock’s Barron’s bounce didn’t last for long. On Saturday, Barron’s journalist Emily Bary said the stock looks like a good buy at its current price given its upcoming name change and recent streamlining initiatives.
“Coach was the subject of much online ridicule after announcing the Tapestry name change, but those who stick with the company as it transforms to a brand house may get the last laugh,” Bary wrote.
Coach initially opened Monday’s session up on the day, trading as high as $40.90. However, the stock quickly reversed course, trading back into negative territory for the day.
The stock’s trading action may not necessarily be a condemnation of Bary’s conclusions. Coach stock had climbed more than 3 percent over the past five trading sessions as several Wall Street analysts have issued positive commentary on the stock as of late.
On Oct. 20, William Blair analyst Dylan Carden declared Coach his preferred handbag investment over Michael Kors Holdings Ltd KORS 0.95%.
“following the recent sell-off, Coach shares are approaching a valuation floor going back to 2000, with momentum left in the core Coach brand and initial conservatism built into Kate Spade estimates presenting an opportunity,” said Carden.
The Barron’s article also mentions KeyBanc, Bernstein and Baird as other vocal Coach bulls.
“Investments in product, marketing, and store experience have helped to differentiate Coach amid a crowded and promotional landscape,” Baird analyst Mark Altschwager recently said (see his track record here).
After a 3-percent five-day run, Coach stock may simply be taking…
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