Citi raised the firm’s price target on Tapestry (TPR) to $55 from $49 and keeps a Buy rating on the shares. The blocked acquisition of Capri Holdings (CPRI) simplifies the Tapestry story, “making it much cleaner,” the analyst tells investors in a research note. The firm says that although Tapestry intends to appeal the decision, the company’s management “may be breathing a secret sigh of relief.” The blocked deal allows the company’s strong free cash flow generating power to come back into focus, and it should resume share buybacks in fiscal 2025, contends Citi.
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Read More on TPR:
- Capri Plunges 45%, Tapestry Jumps 14% after Federal Judge Blocks Merger
- Closing Bell Movers: Deckers up 12% after earnings beat
- Capri, Tapestry to jointly file notice of appeal to U.S. Court of Appeals
- Tapestry issues statement on district court ruling, intends to appeal
- U.S. judge blocks Tapestry-Capri merger in victory for FTC
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