Bank of America Securities analyst Lorraine Hutchinson has maintained their bullish stance on TPR stock, giving a Buy rating on March 7.
Lorraine Hutchinson has given her Buy rating due to a combination of factors that highlight Tapestry’s strategic positioning for growth. The company is focusing on organic growth, particularly through its Coach brand, which has seen significant average unit retail (AUR) growth by reducing discounts and enhancing its product offerings. This strategy not only boosts profitability but also strengthens the brand’s appeal, especially among younger consumers.
Additionally, Tapestry is in the early stages of a long-term turnaround for Kate Spade, applying successful strategies from Coach to revitalize the brand. The company’s emphasis on attracting younger millennial and Gen Z customers, particularly in Asia and China, presents a substantial growth opportunity. With plans to expand store presence and test new concepts that resonate with these demographics, Tapestry is well-positioned to capture a larger market share. These strategic initiatives underpin Hutchinson’s confidence in the company’s potential for sustainable, profitable growth, justifying the Buy rating.
In another report released on March 7, Raymond James also reiterated a Buy rating on the stock with a $88.00 price target.