Tapestry Stock Falls 1.59% Amid 31.36% Trading Surge to $480M Ranks 274th in Liquidity as Morgan Stanley Upgrades Target to $115

Tapestry (TPR) closed August 1, 2025, down 1.59% despite a 31.36% surge in trading volume to $480 million, ranking 274th in market liquidity. The stock's performance contrasted with recent analyst activity highlighting long-term growth potential.

Morgan Stanley upgraded its price target for Tapestry to $115 from $90 while maintaining an Overweight rating. The firm emphasized strong demand for Coach's Tabby and Empire handbag lines, digital channel expansion, and margin improvements as key drivers. Analysts noted the company's ability to sustain premium pricing and operational efficiencies have supported earnings growth, with fiscal 2025 guidance projecting $6.85-$6.95 billion in revenue and $4.85-$5.00 in diluted EPS.

Risks cited include economic sensitivity and competitive pressures, though the firm remains confident in Tapestry's brand resilience and shareholder return initiatives. Recent strategic shifts toward digital commerce and geographic expansion in Europe and Asia are viewed as structural advantages.

Strategies focusing on high-volume stocks have demonstrated significant short-term returns, with a 166.71% gain from 2022 to present for top 500 liquid securities held overnight. This outperformed benchmark indices by 137.53%, underscoring liquidity concentration as a key factor in short-term equity price dynamics.