Tapestry downgraded to Hold from Buy at Loop Capital
Loop Capital analyst Laura Champine downgraded Tapestry to Hold and lowered her price target for the shares to $45 from $59. The company formerly known as Coach closed Friday up 3%, or $1.14, to $43.85. Tapestry's overall competitive positioning is less attractive into the holiday season, Champine tells investors in a research note. The analyst still expects the long-term cost synergies from the Kate Spade acquisition to be substantial, but she's concerned that "less-compelling fashion could yield disappointing holiday results." Champine, however, thinks the current 3% dividend yield and 6% free cash flow yield will support Tapestry shares at current levels.