As reported earlier, BofA/Merrill analyst Lorraine Hutchinson upgraded her rating on Tapestry to Buy from Neutral and raised her price target to $53 from $50. The analyst notes that the recent pullback in valuation to 14-times forward PE is a "rare opportunity" to own a stock with double-digit EPS growth that's trading at a discount to the market valuation of 15.5-times. Hutchinson sees further upside potential from "the continued integration of Kate Spade and steady improvement at the Coach brand", adding that her prior concerns around promotional activity at Coach are now cushioned by the segment's "sufficient" gross margin levels. The analyst also expects the Kate Spade accretion to Tapestry to exceed consensus, raising her FY19 EPS view by 19c to $3.05.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here