Bank of America Securities analyst Lorraine Hutchinson maintained a Buy rating on Tapestry (TPR – Research Report) today and set a price target of $52.00.
Lorraine Hutchinson’s rating is based on the strong potential for growth at Tapestry, particularly through the Coach brand. She points to the brand’s initiatives to expand its lifestyle offerings and push into international markets as key drivers. Furthermore, Hutchinson is optimistic about Tapestry’s use of customer insights for product innovation, which she believes should command a higher valuation multiple due to Coach’s robust margins and strong cash flow generation.
Additionally, Hutchinson sees Tapestry’s plans to integrate and turn around the Kors brand as a positive move, particularly with the anticipated closing of the CPRI acquisition. Tapestry’s strategies to reduce wholesale exposure and increase digital penetration, coupled with its focus on supply chain efficiencies, are expected to unlock significant synergies. The company’s effective use of data analytics to support average unit retail prices further solidifies her Buy rating, underscoring Tapestry’s strength in brand building and targeted marketing.
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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.
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