UBS analyst Michael Binetti said the UBS Evidence Lab Competition Monitor showed handbag industry store growth is stable but the competitive intensity is still increasing. The analyst said Coach has continued to reduce unprofitable full-price stores but said the competitive intensity accelerated. Binetti said the dividend yield offers downside protection and the company can use its cash from its headquarters sale to pursue M&A if its organic growth outlook remains sluggish. Binetti maintained his Outperform rating and $47 price target on Coach shares.