By Teresa Rivas Shares of Coach (COH) were recently outperforming the broader market, up 5%; rival Michael Kors (KORS) was outpacing broader stocks’ fall with a 1.1% loss. According to BMO Capital Markets, the stocks are likely to continue this pattern. Analyst John Morris initiated coverage of the two names today, assigning an Outperform rating and $70 price target to Coach and a Market Perform rating and a $65 price target to Michael Kors. As for Coach, Morris writes that he sees the shares as attractively valued at this point, especially as new leadership and merchandise talent should give the brand a shot in the arm. He also notes that he is encouraged by improvements in the company’s fall lineup, and sees the company’s strategic shift to a lifestyle brand as an opportunity to broaden its product mix. Asia is also a robust market and represents “significant international growth prospects,” he writes. By contrast, Morris writes that much of Kors’ upside is already baked into the stock, despite its strong growth. He sees the stock entering a transitional period when margins begin to normalize on slowing brand momentum. Coach is up well over 20% since Barrons.com recommended the shares in February; as of May the shares still looked cheap.