Coach, Inc. (COH), Ralph Lauren Corp (RL), Michael Kors Holdings Ltd (KORS): Luxury Brands in an Austere Market

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Analysts at BMO Capital Markets have set a market perform rating on the stock while Deutsche Bank AG (USA) (NYSE:DB) initiated coverage with a buy rating and a $70 price target, up nearly 10% from its current prices. The stock is certainly not an undervaluation play and some investors can actually term these valuation numbers as high; it remains to be seen whether a price earnings ratio of 33 is justified even for this growth company.

Foolish bottom line

Overall these stocks stand to benefit immensely from a recovering U.S. economy and a growing demand for luxury accessories in emerging markets. Investors may find Ralph Lauren Corp (NYSE:RL) appealing given its attractive valuation compared to Coach, Inc. (NYSE:COH) and Michael Kors Holdings Ltd (NYSE:KORS).

Jacob Wolinsky has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach.

The article Luxury Brands in an Austere Market originally appeared on Fool.com.

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