Lorraine Hutchinson, an analyst from Bank of America Securities, reiterated the Hold rating on Tapestry. The associated price target was raised to $115.00.
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Lorraine Hutchinson’s rating is based on a combination of factors that suggest a balanced outlook for Tapestry. The company has set realistic goals for the coming years, with a focus on achieving low-teens total stock return driven by earnings per share growth, revenue increases, margin expansion, share repurchases, and dividends. However, while the Coach brand shows promising growth potential, challenges remain with the Kate Spade turnaround, which could impact overall margins.
Despite the positive momentum for Coach, maintaining consistent growth over multiple years is challenging, and tariff headwinds could pose risks. Additionally, while Tapestry plans to expand its retail footprint globally, including opening new stores, the contribution to total sales growth is expected to be modest. These factors contribute to the Hold rating, reflecting a cautious yet optimistic view of the company’s future performance.
According to TipRanks, Hutchinson is a 4-star analyst with an average return of 5.9% and a 53.19% success rate. Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Nike, and Gap Inc.