Canaccord analyst Camilo Lyon lowered his price target on Tapestry to $41 from $58 following its Q2 miss, which he said was disappointing for many reasons, including brand disappointments. The analyst said the issues call into question the confidence he can put into the company achieving its EBIT growth target in 2020. However, Lyon maintained his Buy rating on Tapestry shares.

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.