Tapestry up after Jefferies raises rating to 'buy', PT to Street-high
** Shares of Coach-parent Tapestry TPR.N up ~4% at $64.48 premarket
** Jefferies upgrades stock to "buy" from "hold", raises PT by $30 to Street-high of $80
** Sees market prioritizing TPR as a quality name given improving sales growth, expanding margins, and share buyback, with the Capri CPRI.N deal in the rearview
** Says Coach momentum is driving results and should continue, based on brand heat, innovation continuing and China recovery
** Sees significant price gaps vs. traditional European luxury, higher quality and priced product, less unnecessary discounting, and increasing direct-to-consumer mix as key growth drivers
** Says TPR's minimal wholesale exposure is favorable in current environment as higher DTC leads to improved pricing control, data analytics, sales predictability and attracts new and younger customers
** 13 of 22 brokerages rate the stock "buy" or higher, and 9 "hold"; with a median PT of $64- data compiled by LSEG
** Up to last close, stock had risen 68% YTD
Reporting by Neil J Kanatt in Bengaluru
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