KeyBanc analyst Edward Yruma lowered his price target for Tapestry to $30 from $42 following the company's quarterly results, saying product issues at Kate Spade and a very promotional environment outweighed solid performance at Coach. A turn in Kate Spade trends will take time, Yruma tells investors in a research note, but he thinks that the decision to protect margin and brand will ensure long-term health. The analyst maintains an Overweight rating.

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.