Coach Downgraded to “Hold” at Brean Murray; Valuation Looking High Now (COH)

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Luxury handbag maker Coach, Inc. ( COH ) on Tuesday received a big downgrade from analysts at Brean Murray Carret & Co.

The firm cut its rating on COH from "Buy" to "Hold," citing the stock's recent big run.

A Brean Murray analyst commented, "We are reducing our rating on COH and withdrawing our price target after COH closed within 1% of our former price target of $63 yesterday. While we continue to believe the company's management is among the strongest in retailing, we are hard pressed to pay almost 15X next FY EPS."

Coach shares fell $2.00, or -3.2%, in premarket trading Tuesday.

The Bottom Line
Shares of Coach ( COH ) have a 1.92% dividend yield, based on last night's closing stock price of $62.60. The stock has technical support in the $55-$57 price area. If the shares can firm up, we see overhead resistance around the $65-$66 price levels.

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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: COH


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