COH enjoyed ~50% of its revenue from the US in FY24, which is likely to become a headwind if Trump wins and implements his protectionary tariffs. Also, the combination of a slight earnings miss in August plus the risks associated with Moderna’s potential phase III data for a vaccine against human cytomegalovirus, which causes infant deafness, don’t look fully built into current prices, hence were likely to pass for now.
- We believe the risk/reward toward COH is more attractive after COH’s recent 22% pullback, but it needs to regain investor confidence; it’s not for us.
MM is cautiously bullish COH around $270
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