Tapestry downgraded to Hold from Buy at Jefferies

Jefferies downgraded Tapestry (TPR) to Hold from Buy with an unchanged price target of $50. The analyst cites valuation for the downgrade with the shares up 30% year-to-date. The firm says the stock now properly reflects risk/reward of Capri Holdings(CPRI) merger, which is expected to close in 2024. Coach has been resilient, leading to Tapestry share momentum, but Jefferies is unsure if brand heat and management execution will be enough to offset challenged Capri brands, namely Michael Kors, and integration risk, the analyst tells investors in a research note.