Shares of Coach (COH) were higher by 1% to $45.72 late Monday morning, following a rating upgrade to "buy" from "hold" at Deutsche Bank. The rating change follows the company's plan to acquire fellow luxury accessories and apparel retailer Kate Spade (KATE) .
The firm also cited the success of Coach's turnaround so far and believes the company's management will be able to execute the Kate Spade deal well.
Deutsche Bank has a price target of $54 on Coach stock, up from its previous price target of $40.
Coach announced last week that it is buying Kate Spade in a deal valued at $2.4 billion.
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