Tapestry falls as BofA cuts rating on stock rally

Tapestry

29/07/2025 16:21

** Shares of Coach handbag maker Tapestry TPR.N fall 2.2% to $107.97

** BofA Global Research downgrades stock to "neutral" from "buy"

** Says Coach brand has several more quarters of outsized growth ahead, but the 66% YTD surge in the stock price, compared with a 9% rise in the S&P 500 .SPX index, leaves the shares close to fair value

** BofA, however, raises price objective to $115 from $95 to reflect continued confidence in the momentum at Coach

** Expects a strong Q4, says Coach's Summer Sale started 23 days later than last year, which likely caused a non-comparable late-quarter sales uptick

** For FY 26, expects TPR to guide to mid single digit sales growth and flat margins

** 14 of 21 brokerages rate the stock "buy" or higher, 7 "hold"; their median PT is $100 - data compiled by LSEG

** Including session's move, stock up 65.1% YTD

 (Reporting by Sukriti Gupta in Bengaluru)

 ((Sukriti.Gupta@thomsonreuters.com;))