TD Cowen analyst Oliver Chen reiterated a Buy rating on Tapestry (TPR – Research Report) today and set a price target of $52.00.
Oliver Chen has given his Buy rating due to a combination of factors including Tapestry’s strong earnings performance and effective business strategies. Tapestry outperformed expectations with their earnings per share (EPS) result, driven by impressive revenue growth from their Coach brand and significant margin improvements. The company’s ability to manage costs effectively, especially at its Kate Spade and Stuart Weitzman brands, also contributed to a robust operating income. This financial discipline, combined with powerful trends in international markets, underscores the basis of Chen’s positive outlook.
Moreover, Chen acknowledges Tapestry’s strategic initiatives that are successfully attracting new customers and retaining existing ones amidst a challenging retail environment. The company’s use of proprietary data and inventory management, along with impactful marketing campaigns, has enabled it to strengthen its brand presence and increase its gross margin. Tapestry’s focus on reducing costs, raising product prices, and cutting back on promotions has led to improved profitability. These elements, along with a raised earnings guidance for the following year, support Chen’s decision to raise the price target to $52, suggesting a strong vote of confidence in Tapestry’s ongoing performance and future prospects.
According to TipRanks, Chen is a 4-star analyst with an average return of 5.1% and a 51.91% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as Sally Beauty, Levi Strauss & Co, and Tapestry.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $56.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Tapestry (TPR) Company Description:
Tapestry, Inc. engages in the provision of luxury accessories and lifestyle brands. It operates through the following segments: Coach, Kate Spade, Stuart Weitzman, and Corporate. The Coach segment consists global sales of coach brand products to customers through coach operated stores, including the internet and concession shop-in-shops, and sales to wholesale customers, and through independent third party distributors. The Kate Spade segment focuses on Kate Spade New York brand products to customers through Kate Spade operated stores, including the Internet, sales to wholesale customers, through concession shop-in-shops and through independent third party distributors. The Stuart Weitzman segment comprises Stuart Weitzman brand products primarily through Stuart Weitzman operated stores. The Corporate segment represents certain costs that are not directly distributed to a brand. The company was founded by Dawn Hughes in 1941 and is headquartered in New York, NY.
Read More on TPR:
