“Gen Z Customer Acquisition” Proves Key for Tapestry Stock (NYSE:TPR) Gain

Retailers are having a tough time these days, and not without reason. Between economic troubles on one hand and tariff issues on another, trying to pin down the next even six months is a nigh-insurmountable challenge. But new reports from TD Cowen analysts suggest that upscale fashion retailer Tapestry (TPR) is in line to come out ahead. That news proved welcome enough to investors, if only just, and shares notched up fractionally in Thursday afternoon’s trading.

The word from TD Cowen, via analyst Oliver Chen—who has a four-star rating on TipRanks—notes that Tapestry has made some serious inroads with Gen Z. And given that Gen Z is rapidly stepping up to be the big name in disposable income—such as it is these days—that is giving Tapestry some extra market firepower. This projection was not only enough for Chen to hike his rating from Hold to Buy, but also to hike the price target from $90 to its new $100 per share.

Chen notes that “continued brand momentum” is likely to help fuel Coach, which is of course part of Tapestry. Better yet, Coach currently has “…low…brand awareness…in China and Europe.” That will provide what Chen calls a “…long-term growth opportunity” as Tapestry looks to make gains wherever it can. In fact, Chen looks for Tapestry to branch out into the footwear market next, where its efforts are currently comparatively light.

“Growth Amid Challenges”

Meanwhile, other analysis suggests that there are some good opportunities for growth with Tapestry, despite the fact that the landscape is not looking especially hospitable for high-end brands right now. For instance, Tapestry has very little sourcing going on in China, which is going to insulate it from a lot of tariff pressures.

Even the economic troubles are likely to be light for Tapestry, particularly among its target market of high-end, well-heeled shoppers. These shoppers are least likely to be troubled by economic downturn, reports note, and will likely continue to buy anyway.

Is Tapestry a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on TPR stock based on 14 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 92.99% rally in its share price over the past year, the average TPR price target of $90.69 per share implies 10.69% upside potential.

See more TPR analyst ratings

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