BofA raised the firm’s price target on Tapestry to $50 from $42 and keeps a Buy rating on the shares. Concerns have been centered around the Capri acquisition, specifically the incremental leverage and the need for a Kors turnaround, but the firm believes concerns are well-known and contends that Tapestry is positioned to execute on both fronts. The firm sees room for multiple expansion as it expects Tapestry’s superior margin profile and strong cash flow generation to allow for rapid debt repayment.
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