Coach Inc. (NYSE:COH) America’s leading luxury accessory brand for men and women, is believed to be on the verge of a turnaround in terms of sales and volumes growth at Piper Jaffray. Veteran analyst, Erinn Murphy maintains her bullish view on the stock and believes that comparable same store sales are likely to be positive for the next quarter.

Ms. Murphy stated in her latest report regarding COH that a turnaround for the stock is expected during the next quarter as the company’s revenue and comps are largely likely to get better from here on. To support the hypothesis, the analyst studied the mechanics of such a change on her financial model for COH and found data points quite in line with her estimates, given that the store labor and rent costs stay below a certain threshold. The expenses for SG&A are mapped from the year 2015 to subsequent years in Piper Jaffray’s model and following few assumptions follow; expenses related to selling exclusive of rent remain flat, rents remain flat locally but increase globally and marketing costs will increase in connection to sales at a certain percentage in order to maintain brand momentum.

The analyst summarized her observations and assumptions by stating that the 2017 estimate for SG&A might be a little on the conservative side by $60 to $80 million which translates to $0.15 to $0.20 impact on the EPS. Piper Jaffray’s FY17 EPS estimate stands at $2.15 and stipulates an operating margin of 18.3% and is slightly above the Street’s estimate of $2.10.

COH’s Overweight rating and a price target of $42 were not altered and the analyst remained largely bullish on the stock. The analyst opinion has 5 strong Buy, 11 Buy, 18 Hold and two Underperform ratings. The stock closed at $38.93 yesterday.