UBS analyst Jay Sole downgraded Tapestry to Neutral from Buy with an unchanged price target of $25. The analyst sees little potential for upward earnings revisions after his firm's Evidence Lab suggested that U.S. consumer holiday spending intentions this year are "lackluster." Further, a key takeaway from UBS's recent Future of Retail conference was pressure on mid-tier brands like Coach and Kate Spade from used handbag market growth, which is likely to continue into the foreseeable future, Sole tells investors in a research note. The analyst models 2% annual earnings growth for Tapestry over the next five years. This level of growth makes the stock's current valuation fair, contends the analyst.

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