Canaccord Genuity Upgrades Coach to "Buy"; Says Selling is Overdone (COH)

Canaccord Genuity Upgrades Coach to “Buy”; Says Selling is Overdone (COH)

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Luxury handbag maker Coach, Inc. (COH) on Tuesday caught a big upgrade from analysts at Canaccord Genuity.

The firm boosted its rating on COH from “Hold” to “Buy” with a $71 price target, suggesting a 29% upside to the stock’s Monday closing price of $54.84.

Canaccord Genuity believes investors have overreacted to COH’s investment plans for 2013, and sees China as a big growth driver over the next several years.

Coach shares rose $1.01, or +1.8%, in premarket trading Tuesday.

The Bottom Line
Shares of Coach (COH) have a 2.19% dividend yield, based on last night’s closing stock price of $54.84. The stock has technical support in the $46-$49 price area. If the shares can firm up, we see overhead resistance around the $60 price level.

Coach, Inc. (COH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.