TD downgrades Tapestry to Hold on valuation, lack of upside

TD Cowen downgraded Tapestry (TPR) to Hold from Buy with an unchanged price target of $52. The firm cites valuation for the downgrade as the stock is within 3% of its price target after rallying 40% year-to-date and +85% in the last 12 months. Meanwhile, TD is cautious on a lack of potential upside due to “muted” China and U.S. consumer trends, “double-edged” merger risk factors on the pending Capri Holdings (CPRI) deal, and Tapestry’s portfolio platform strategy.