As the broader retail and fashion apparel sector suffered steep drops in share prices due to concerns in China, shares of Coach Inc. jumped during the midday session after an analyst’s upgrade on the stock.

Shares rose 1.3 percent to $33.14 on lighter-than-average volume following a report from BB&T analyst Corinna Freedman that pegged the accessories company a “hold” rating from a prior “underweight” rating. Freedman said she believes the firm’s “prior thesis has played out. In our view, the negative trends at the company are no longer worsening and we believe market share losses have largely bottomed.”

“However, we currently see little evidence of [Coach] recapturing the market share despite Stuart Vevers’ improved product and enhanced in-store experience,” Freedman added. “We believe the stock is fairly valued at its current valuation levels, and do not see any near-term catalyst driving multiple expansion.”

The stock’s 52-week high is $43.87, and the low is $27.22. Last month, Cowen & Co. analysts upgraded the stock to “outperform” from “market perform” and pegged it with a $38 price target.

Coach has a market capitalization of $9.1 billion. Its return on equity for the trailing 12 months is 15.5 percent, according to S&P Capital IQ. This compares to a ration of about 47 percent two years ago.

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