Tapestry's (TPR) 10% stock slide on Thursday despite reporting a fiscal Q1 beat reflects high buyside expectations rather than a change in fundamentals, Morgan Stanley said in a note Friday.

The investment thesis remains intact, given continued momentum at Coach North America, improving trends at Kate Spade, and operating margin expansion despite tariff headwinds, the investment firm said.

The stock's pullback could offer a buying opportunity, though near-term upside may be limited by bearish sector sentiment, according to the note.

Tapestry set fiscal Q2 earnings per share guidance slightly below consensus and projected slower sales growth for the holiday quarter, though Morgan Stanley expects those targets will likely be exceeded.

Morgan Stanley raised its price target to $126 from $124, and maintained an overweight rating for Tapestry.

Shares of the company were up more than 3% in recent trading Friday.

Price: 102.02, Change: +3.21, Percent Change: +3.25