Citi analyst Paul Lejuez has maintained their bullish stance on TPR stock, giving a Buy rating today.
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Paul Lejuez has given his Buy rating due to a combination of factors that highlight Tapestry’s promising financial outlook and strategic initiatives. The management’s recent investor day presentations in New York City emphasized their long-term plans and targets, particularly the sustained success of the Coach brand and potential improvements for the Kate Spade brand. The company has set reasonable financial goals, including mid-single-digit revenue growth, approximately 200 basis points of operating margin expansion, and low double-digit EPS growth in the fiscal years 2027 and 2028, which align with market expectations.
Moreover, management’s commitment to returning cash to shareholders is a significant aspect of Tapestry’s appeal, with plans to return 100% of its $4 billion cumulative free cash flow from fiscal years 2026 to 2028. The revenue targets are divided between fiscal years 2026 and 2027/2028, with expected growth driven by new store openings and a targeted annual comparable sales increase of at least 3%. Additionally, the company aims for an operating margin of over 22% by fiscal year 2028, with significant contributions from the Coach brand. These strategic initiatives and financial targets support the optimistic outlook and justify the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $127.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TPR in relation to earlier this year.