Tapestry's (TPR) 66% year-to-date rally has priced in near-term strength and the stock is near the top of its 10-year price-to-earnings range with limited upside from current levels, BofA Securities said in a note Tuesday.

BofA analysts said they expect a "strong" fiscal Q4 for the company, with expected sales growth of 5.4% from a year earlier.

The brokerage firm also expects Tapestry to guide for fiscal 2026 mid-single-digit sales growth, with flat margins due to near-term tariff headwinds.

The fashion company's Coach brand is expected to have "several quarters of outsized growth ahead," but for fiscal 2026, the analysts said they don't expect management to guide for double-digit growth for the brand.

While tariffs pose a headwind, Tapestry has laid out mitigation strategies with expected full margin recovery in fiscal 2027, BofA analysts said.

The firm downgraded its rating on Tapestry to neutral from buy while raising the price target to $115 from $95.

Shares were down over 2% in recent Tuesday trading.

Price: 107.88, Change: -2.54, Percent Change: -2.30