Tapestry’s Strong Growth Potential and Strategic Positioning Justifies Buy Rating

Analyst Ike Boruchow from Wells Fargo reiterated a Buy rating on Tapestry (TPR – Research Report) and keeping the price target at $100.00.

Ike Boruchow has given his Buy rating due to a combination of factors that highlight Tapestry’s strong growth potential and strategic positioning. The company’s recent meetings with top executives revealed a high level of confidence in sustaining current momentum, supported by impressive top-line growth at Coach, particularly in North America. This growth is driven by the brand’s ability to attract younger customers and resonate with them through popular products, leading to revenue estimates that management believes are conservative.
Another significant factor is Tapestry’s success in increasing its Average Unit Retail (AUR) by 40-50% over the past five years, driven by brand elevation and a strategic shift away from broad discounting. Despite this increase, the AUR remains competitive compared to luxury peers, with a widened pricing spread. Additionally, Tapestry is seeing a positive shift in unit sales, indicating a balanced growth strategy moving forward. The company’s ability to manage tariff headwinds through strategic pricing and cost mitigation further solidifies its strong financial outlook.

In another report released on June 6, Morgan Stanley also maintained a Buy rating on the stock with a $90.00 price target.