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Jefferies Boosts Target, Estimates for Coach; Meeting with Management Sparks Growth Story (COH)

Luxury handbag maker Coach, Inc. ( COH ) on Tuesday caught some further positive commentary from analysts at Jefferies & Co., following a positive meeting with company management.

The firm maintained its "Buy" rating on COH while boosting its price target from $80 to $90. That new target suggests a 20% upside to the stock's Monday closing price of $74.99.

A Jefferies analyst commented, "The meeting [with COH management] focused on drilling down into key growth themes for the company: US improvement, the men's category, China expansion, as well as other int'l markets' potential. Following a very positive meeting, we are raising estimates slightly and our PT goes to $90 as we remain buyers of this best-in-class company."

Accordingly, the firm raised its third quarter earnings estimates by a penny, its 2012 estimate by two cents, and 2013 estimates by 10 cents.

Coach shares were mostly flat in premarket trading Tuesday.

The Bottom Line

Shares of Coach ( COH ) have a 1.20% dividend yield, based on last night's closing stock price of $74.99. The stock has technical support in the $67-$70 price area. The shares are trading right at all-time highs.

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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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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