Alexandra Straton, an analyst from Morgan Stanley, maintained the Buy rating on Tapestry. The associated price target was raised to $115.00.
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Alexandra Straton’s rating is based on a combination of factors that indicate a positive outlook for Tapestry’s stock. She highlights the company’s resilience to tariffs and strong brand momentum, which stand out in a challenging retail environment. These factors, along with anticipated positive revisions in next twelve months earnings per share, contribute to a favorable valuation re-rating.
Furthermore, since May, Tapestry’s stock has shown a bullish trend, outperforming its peers with a significant increase in stock price and valuation metrics. Although the current valuation appears full, Straton sees potential for modest earnings upside driven by gross margin improvements. The upcoming September Investor Day is expected to be a significant catalyst, and the initial fiscal year guidance could position Tapestry for ongoing performance above market expectations. As a result, she has raised the price target to $115, reflecting slightly higher medium-term sales growth.
Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Bath & Body Works, and Tapestry. According to TipRanks, Straton has an average return of 5.3% and a 55.98% success rate on recommended stocks.
In another report released on July 29, Bernstein also maintained a Buy rating on the stock with a $100.00 price target.