Tapestry falls as BofA cuts rating on stock rally

Shares of Coach handbag maker Tapestry TPR.N fall 2.2% to $107.97

BofA Global Research downgrades stock to "neutral" from "buy"

Says Coach brand has several more quarters of outsized growth ahead, but the 66% YTD surge in the stock price, compared with a 9% rise in the S&P 500 .SPX index, leaves the shares close to fair value

BofA, however, raises price objective to $115 from $95 to reflect continued confidence in the momentum at Coach

Expects a strong Q4, says Coach's Summer Sale started 23 days later than last year, which likely caused a non-comparable late-quarter sales uptick

For FY 26, expects TPR to guide to mid single digit sales growth and flat margins

14 of 21 brokerages rate the stock "buy" or higher, 7 "hold"; their median PT is $100 - data compiled by LSEG

Including session's move, stock up 65.1% YTD