Tapestry price target lowered to $39 from $43 at BMO Capital

BMO Capital lowered the firm’s price target on Tapestry to $39 from $43 and keeps a Market Perform rating on the shares. The company’s Q3 earnings beat was driven by better-than-expected gross margin, which benefited from lower freight and operational outperformance, but the management reiterated its FY24 outlook while lowering the top-line expectations given currency and the Asia/North America moderation, the analyst tells investors in a research note. BMO adds that it remains at neutral pending clarity around the Capri acquisition and a better sense of the multiple that investors will apply.