NEW YORK (TheStreet) -- Shares of Coach Inc. (COH) were up by 1.71% to $36.36 in pre-market trading, before going flat, on Thursday, after analysts at Oppenheimer initiated coverage on the stock with a "Perform" rating and $36 price target.
The firm said it initiated coverage on the designer handbag, clothing, accessories, and shoe retailer as it believes Coach "should be well positioned to take advantage of the rapidly growing handbag industry and benefit from easing comparisons/expansion of underpenetrated categories."
"However, competitive pressures are intensifying and Coach adopts less promotional stance through brand transformation," Oppenheimer added.
The firm estimates that Coach's earnings for 2015 will be $1.87 per share, and $2 per share for 2016.
Separately, TheStreet Ratings team rates COACH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate COACH INC (COH) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."