BMO Capital analyst John Morris raised his price target on Tapestry to $46 after Q4 earnings, noting the EPS and gross margin beat helped by the margin strength at Coach. Morris adds that the company continues to focus on reducing promotional activity in its Kate Spade segment after its comps fell 7%, keeping his Market Perform rating on Tapestry.

Capri Holdings (CPRI) shares could fall to the low-to-mid $20s if Tapestry's (TPR) $57 per share takeover is successfully blocked by the Federal Trade Commission, Yiqin Shen of Bloomberg reports, citing a survey of 20 merger-arbitrage specialists. The survey, conducted on Tuesday, focuses on merger-arbitrage estimates on the Capri's downside price - a level that reflects the stock's fundamental value by the end of 2024, when the outcome of the FTC's challenge is expected to be either upheld or overturned in court, Shen notes. Shares of Capri Holdings are down 5% to $34.81 in midday trading.