BTIG analyst Robert Drbul reiterated a Buy rating on Tapestry yesterday and set a price target of $140.00.
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Robert Drbul has given his Buy rating due to a combination of factors that highlight Tapestry’s strong market position and growth potential. The company’s brand-building capabilities, particularly through the Coach brand, are seen as a structural advantage that supports durable growth in a large and attractive market. Tapestry’s strategy to acquire consumers at the Point of Market Entry and its investments aimed at achieving ‘Best in Class’ margins are key drivers of its growth ambitions.
Additionally, the Coach brand offers a compelling value proposition, with significant room for AUR growth, as evidenced by its competitive pricing compared to European luxury players. The brand’s multiple growth drivers, such as customer acquisition and new store openings, are expected to contribute to mid-single-digit growth in the coming years. Furthermore, Tapestry’s plan to return $4 billion to shareholders through share repurchases and dividends, supported by strong free cash flow and a solid balance sheet, reinforces the company’s financial health and potential for stock appreciation.
According to TipRanks, Drbul is a 4-star analyst with an average return of 4.5% and a 53.28% success rate. Drbul covers the Consumer Cyclical sector, focusing on stocks such as FIGS, Columbia Sportswear, and Tapestry.
In another report released on November 18, TD Cowen also reiterated a Buy rating on the stock with a $120.00 price target.