NEW YORK (TheStreet) -- Coach (COH) shares are flat at $36.49 in pre-market trading today after the luxury accessories manufacturer had coverage started with a "neutral" rating by analysts at Mizuho Securities on Monday.
The firm also set a $34 price target on the company's shares which represents a potential 6.8% downside from the stock's current price.
Coach shares benefited last week from rumors that rival LVMH (LVMHF) was considering acquiring the company, though the Louis Vuitton brand maker has not commented on those reports. Coach shares went up as much as 8% last week following the news, a reversal from the 30% decline the struggling company has seen during the rest of the year.
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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."