Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Thursday, Raymond (NSE:RYMD) James analyst Rick Patel adjusted the price target for Tapestry Inc. (NYSE: NYSE:TPR), a New York-based luxury fashion holding company, increasing it to $85.00 from the previous target of $74.00. The firm’s rating for Tapestry remains at Outperform. The company, which boasts impressive gross profit margins of nearly 75% and has delivered a remarkable 104% return over the past year, continues to demonstrate strong market performance. According to InvestingPro data, Tapestry maintains a healthy financial position with a current ratio of 1.58, indicating strong liquidity. This adjustment comes amid a broader market update which saw a different company, Vor, taking a significant strategic shift. Tapestry’s strong market position is further evidenced by its consistent dividend payments for 17 consecutive years and dividend growth for the past 4 years, currently yielding 1.81%. For deeper insights into Tapestry’s financial health and growth potential, InvestingPro offers 12 additional investment tips and comprehensive analysis in its Pro Research Report.
Vor, a separate entity from Tapestry, announced a major change in its business direction. The company revealed plans to cease its clinical and manufacturing operations immediately and to explore strategic alternatives for the business. This pivot is not attributed to any safety concerns with the company’s products but is a strategic decision made by Vor management and its board based on the available clinical data.
As a result of this announcement, Raymond James has revised its outlook on Vor, downgrading the rating to Neutral. The firm also adjusted the price target for Vor to $0.25, a figure grounded in year-end 2025 cash projections. This price target reflects the anticipated impact of the company’s decision to significantly scale back operations, including a 95% reduction in its workforce.
Patel’s commentary on the downgrade for Vor emphasizes the strategic nature of the decision and the firm’s consequent adjustment of the stock’s outlook and price target. The changes to Vor’s operational structure and strategic focus have necessitated a reevaluation of its investment potential, leading to the new Neutral rating and revised price target.
In other recent news, Tapestry Inc. reported impressive financial results for the third quarter of fiscal year 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $1.03, surpassing the forecast of $0.88, and reported revenue of $1.6 billion, which also outpaced the anticipated $1.53 billion. Tapestry raised its fiscal 2025 revenue guidance to $6.95 billion and increased its EPS guidance to approximately $5, indicating high teens growth. Morgan Stanley (NYSE:MS) analysts upgraded Tapestry’s stock rating from Equalweight to Overweight, raising the price target from $75 to $90. This upgrade was based on favorable developments in factors previously influencing their neutral stance and anticipated positive revisions in Tapestry’s near-term EPS. The analysts also highlighted Tapestry’s effective tariff management and brand momentum as key differentiators in the market. These recent developments reflect growing investor confidence in Tapestry’s strategic direction and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.