Alexandra Straton, an analyst from Morgan Stanley, maintained the Hold rating on Tapestry (TPR – Research Report). The associated price target remains the same with $75.00.
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Alexandra Straton has given her Hold rating due to a combination of factors concerning Tapestry’s recent corporate decisions and market position. The sale of the Stuart Weitzman brand to Caleres is viewed positively as it reduces distractions for management and cleans up the company’s equity narrative. This divestiture allows Tapestry to concentrate more on its core brands like Coach and Kate Spade, which could enhance operational focus and shareholder value.
However, despite these potential benefits, the financial impact of the sale is expected to be minimal due to Stuart Weitzman’s small contribution to Tapestry’s overall financials. Moreover, the recent run-up in stock price may already reflect much of the anticipated positive developments, limiting further immediate upside. Therefore, while the strategic move is a step forward, the need for evidence of sustained growth, particularly in the Coach brand, keeps the rating at Hold.
In another report released on February 7, UBS also maintained a Hold rating on the stock with a $80.00 price target.
Based on the recent corporate insider activity of 47 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.