Tapestry slips as Barclays downgrades to 'equal weight' on demand risks

TPR Co

23/01/2023 15:31

(Updates)
    ** Shares of luxury handbag maker Tapestry Inc  TPR.N  down
~1% at $43.27 in morning trade
    ** Barclays downgrades TPR stock to "equal weight" from
"overweight"; raises PT to $43 from $38 
    ** Our quarterly handbag promo tracker suggests there could
be demand risk in the accessory and handbag segment as the
pressure of inflation creeps to higher household-income brackets
- brokerage
    ** Says tracker shows "deeper" promotions at TPR, driven by
Kate Spade and Coach, for holiday quarter
    ** Brokerage sees certain positive impacts to TPR's sales
and margins in 2023 
    ** Says company could benefit from recovery in China, margin
recapture from freight, supply chain and input cost inflation  
    ** Barclays raises PT on Michael Kors-owner Capri Holdings
Ltd  CPRI.N  to $72 from $56 
    ** We raise our valuation multiple due to the prospects of
global tourist recovery, which primarily benefits global luxury
brands Versace and Jimmy Choo - Barclays
    ** Shares of CPRI up ~1% at $63.77
    ** Tapestry fell 6.2% in 2022, while Capri lost ~12% last
year
 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))