Morgan Stanley Lightens up on Luxury Brands, Downgrades Coach, Tiffany, and Nordstrom (COH, TIF, JWN)

Analysts at Morgan Stanley on Friday cut their ratings on several luxury brands, citing their near all-time high valuations.

The firm said it made the following ratings changes:

  • Coach, Inc. (COH) – Downgraded from “Overweight” to “Equal-weight” with a $71 price target (8% upside).
  • Tiffany & Co. (TIF) – Downgraded from “Overweight” to “Equal-weight” with an $84 price target (7% upside).
  • Nordstrom, Inc. (JWN) – Downgraded from “Overweight” to “Equal-weight” with a $52 price target (2% uspide).

All of the luxury brands downgraded by Morgan Stanley are approaching all-time highs, which the analyst cited as a valuation concern. Despite a lackluster economy, the companies’ stocks have all risen significantly this year, compared with a small loss in the benchmark S&P 500 Index.

The Bottom Line
Shares of Coach (COH) have a 1.37% dividend yield, based on last night’s closing stock price of $65.64. The stock has technical support in the $59-$60 price area. The shares are trading near all-time highs in the $67-$68 price range. Shares of Tiffany (TIF) have a 1.48% dividend yield, based on last night’s closing stock price of $78.54. The stock has technical support in the $70-$75 price area. The shares are trading near all-time highs in the $83-$84 price range. Shares of Nordstrom Inc. (JWN) have a 1.80% dividend yield, based on last night’s closing stock price of $51.07. The stock has technical support in the $46-$48 price area. The shares are trading near all-time highs in the $55-$56 price range.

None of the dividend stocks mentioned in this article have a high enough Dividend.com DARS™ Rating to qualify for our “Recommended” list.

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

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