Morgan Stanley's List Of Least-Preferred Global Stocks Features Coach And European Fashion Names

Morgan Stanley unveiled on Friday a list of the firm's least-preferred global stocks. The list includes Prada, Swatch, Adidas (OTC: ADDYY) and Coach Inc (NYSE: COH).

The analysts note that Prada's management team has shown no sign of improving recent declining trends and that the company's new focus on lower price point items will compress margin.

On the other hand, Swiss-based Swatch will be forced to deal with potential side effects of the SNB's action last week. The company is seeing higher competition as smartwatch momentum is building up.

Adidas' rising costs is cause for concern for Morgan Stanley analysts who note that that higher investment spends are required to reverse U.S. share losses.

Finally, Coach's steps to stabilize its image and fix its wrongdoings is taking a heavy toll as the company burns through cash.