Bank of America Securities analyst Lorraine Hutchinson reiterated a Buy rating on Tapestry (TPR – Research Report) today and set a price target of $95.00.
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Lorraine Hutchinson has given her Buy rating due to a combination of factors that highlight Tapestry’s strong positioning for sustainable and profitable growth. The company’s second-quarter results exceeded expectations, prompting management to raise guidance for the fiscal year 2025. This has led to an increase in projected earnings per share for fiscal years 2025 and 2026, and a higher price objective for the stock.
A key driver behind this positive outlook is the momentum seen in the Coach brand, which reported an 11% increase in sales in the second quarter. The brand’s success in attracting new customers, especially from the Gen Z and Millennial demographics, along with high retention rates, underscores significant long-term growth potential. While the Kate brand is undergoing a turnaround, strategic initiatives are being implemented to improve sales trends and operating margins. Additionally, gains in average unit retail prices and improvements in supply chain costs support a favorable margin outlook, further justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 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.