Pacific Crest Securities expects changes in TV viewing will continue to be positive for Netflix (NFLX) and Jefferies is out with the latest results of its survey on the handbag sector. The findings of the survey could bode well for Coach (COH) but could signal a downward pattern for Vera Bradley (VRA). Pacific Crest Securities says the firm has an OVERWEIGHT rating on shares of Netflix. Analysts say there are a few key trends in the media and entertainment space which bode well for the company. First, Pay-TV penetration of total households has fallen 10-percent in the past 5 years, in contrast Netflix has nearly doubled its penetration into households to 35-percent in the same period. Secondly, Pacific Crest says streaming video on demand shows no signs of slowing, with not only Netflix showing strong year over year growth, but also Amazon (AMZN) and Hulu. And finally, they say on-demand remains the most disruptive force in TV. Jefferies says it added Coach (COH) to its franchise picks list and upgraded shares to BUY from HOLD and put a $50 price target on the shares. Jefferies said it did its own survey which found that the handbag market should re-accelerate as newer styles gain mass appeal. Jefferies also found that Coach’s turnaround appears to be taking hold with customers. A bit of a different story for Vera Bradley (VRA). The brand’s appeal appears to be trending lower among consumers. For that reason, Jefferies lowered its rating on the shares to HOLD from BUY and put an $11 price target on the shares. TheStreet’s Ruben Ramirez has details from New York.
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