BMO Capital believes that the North American handbag market continues to be weak and decelerate, as consumers spend less on handbags and more on other priorities, including travel and apparel. The firm says that Kate Spade (KATE) is offering few discounts, but its products are being displayed less prominently by stores while its comps look set to fall in the near-term. Coach's (COH) stock reflects the belief that the company's fundamentals will rebound, but this expectation is premature, according to the firm. BMO Capital thinks that Coach and Michael Kors (KORS) will suffer from a downturn in tourism,.while Michael Kors' new products and original design goods are struggling. BMO cut its price target on Coach to $28 from $37, reduced its target on Kate Spade to $19 from $30 and cut its price target on Michael Kors to $40 from $51.