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Tapestry’s Resilience and Growth Potential: A Buy Rating with Optimistic Earnings Outlook

Tapestry’s Resilience and Growth Potential: A Buy Rating with Optimistic Earnings Outlook

Tapestry, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alexandra Straton from Morgan Stanley maintained a Buy rating on the stock and has a $120.00 price target.

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Alexandra Straton has given her Buy rating due to a combination of factors that reinforce her confidence in Tapestry’s future performance. Firstly, she highlights the company’s potential to exceed near-term and long-term earnings per share estimates, supported by management’s new targets. Additionally, Tapestry’s resilience against tariffs and its strong brand momentum in the competitive softlines market contribute to a positive outlook.
Furthermore, Straton points to the ongoing secular tailwinds in the handbag sector, which could benefit Tapestry amidst challenges faced by competitors. Although there is no immediate catalyst for a significant re-rating, she believes that Tapestry’s stock is likely to appreciate gradually over time, driven by a consistent track record of positive earnings revisions. The updated price target of $120 reflects a more optimistic medium-term sales forecast, indicating a potential for continued growth.

In another report released today, Barclays also maintained a Buy rating on the stock with a $127.00 price target.

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