Coach's share price has already fully valued the company's turnaround prospects, according to analysts who also factored in "steadily improving comp and margin trends over the coming four to six quarters."
They pointed out challenges Coach may face, including that turning a brand around in the minds of consumers is a tough undertaking, and that near-term sales improvements is unlikely to be linear.
Separately, the New York design house of modern luxury accessories and lifestyle collections announced earlier this month that it has completed the acquisition of Stuart Weitzman Holdings, a women's luxury footwear designer.
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 reasonable valuation levels, expanding profit margins and good cash flow from operations. 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 disappointing return on equity."