MKM Partners analyst Roxanne Meyer lowered her price target on Tapestry to $52, reducing her implied multiple to 18-times her expected FY20 earnings from 20-times after its recent Q2 earnings miss and the disappointing guidance for the second half of FY19. The analyst also believes that Tapestry is a "dislocated stock" with a "misunderstood story" and recommends that investors buy shares now, noting that investors concerns over the management's ability to integrate of Kate Spade and the company's reduced visibility toward double-digit earnings growth at Coach in 2020 are not warranted.

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.

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

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