Newspaper article The Florida Times Union

Coach Inc. Bags a New Stock High; Area Operations Lauded

Newspaper article The Florida Times Union

Coach Inc. Bags a New Stock High; Area Operations Lauded

Article excerpt

Byline: Mark Basch

Coach Inc.'s distribution center on Jacksonville's Northside must be a pretty busy place these days, judging by the company's stock activity.

The New York-based maker of handbags and other accessories, which bottomed out at $25.18 in July, reached a record high of $44.99 last week after Citigroup Research analyst Kimberly Greenberger started coverage of Coach with a "buy" rating.

Greenberger expects even bigger things. Her target price for the stock is $57.

"Coach represents a compelling growth story with expansion opportunities in established markets (U.S. and Japan) and new markets (primarily Asia)," her research report said. She expects big gains in sales and earnings in the next few years.

Coach also got a new "buy" rating two weeks ago from Oppenheimer & Co. analyst Christopher Jones, but his target price is only $50.

Greenberger's report also said the 560,000-square-foot distribution center in Jacksonville will be an important part of Coach's business.

"This redesigned distribution center should support the company's sales and store growth for the next few years," her report said.

CITIGROUP REACHES NEW HIGH

Speaking of Citigroup, we told you last Monday that the stock was nearing a record high and it did achieve a record of $55.61 last week. It was pushed over the top when Merrill Lynch & Co. analyst Guy Moszkowski raised his rating on the stock from "neutral" to "buy."

But after it reached the record, A.G. Edward & Sons analyst David Stumpf lowered his rating from "buy" to "neutral," saying the stock no longer offered enough upside after gaining 12 percent this month.

ANALYSTS LOWER PSS FORECASTS

After PSS World Medical Inc. said last week that lower-than-expected flu vaccine sales are reducing earnings goals, analysts said the Jacksonville-based distributor of medical supplies will likely change the way it handles the vaccine. …

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