1. TPR downgraded from Buy to Hold by Bank of America Securities. 2. Analyst raises price forecast from $95 to $115 despite downgrade. 3. Coach brand's strong growth noted, but valuation is near fair value. 4. Fiscal 2026 guidance shows moderate sales growth amid tariff pressures. 5. TPR shares down 2.35% to $107.83 following the news.
The downgrade to Hold suggests a stabilization in outlook. Historical comparisons show price reactions can be muted on downgrades amid strong brand performance.
The balance of strong brand performance and the downgrade impacts investor sentiment critically. The expected sales growth and margins keep long-term potential while moderating immediate outlook.
Immediate analysts' ratings tend to have short-term effects. Longer-term outlook remains dependent on growth trajectories and margin adaptations post-tariffs.