Barclays Reexamines Coach, Tiffany and Kors

Coach Inc. is on the upswing, Tiffany & Co. is a work in progress and Michael Kors Holdings “may soon be in need of transformation,” at least according to Barclays analyst Joan Payson, who updated her take on higher-end brands today. Each of companies has their own challenges and opportunities, but they and many of their competitors are all tied closely to the U.S. market. “Domestic trends will likely be at the forefront of driving shares and viewed as an indicator of progress,” she wrote in a research note. The analyst upgraded Coach to overweight from equal weight and raised her target price on its shares to $50 from $38. The handbag maker — which grew to be a giant when it had the affordable luxury space to itself but has struggled to transform in recent years — is now “driving the bandwagon,” according to Payson. “With turnaround efforts well underway, we are growing more confident in the prospect of domestic store comp acceleration,” she said, noting Coach is seeking to elevate its stores and moving to more of a full price model online. While Coach is getting its mojo back, Payson said Tiffany is still a work in progress as the firm seeks

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