Bernstein analyst Aneesha Sherman has maintained their bullish stance on TPR stock, giving a Buy rating today.
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Aneesha Sherman’s rating is based on several compelling factors that highlight Tapestry’s strong market position and growth potential. The company, particularly its Coach brand, has demonstrated robust performance with significant growth in the first quarter and a promising outlook for the second quarter. This positive trajectory is supported by strong customer acquisition trends, especially among younger, high-paying, and loyal Gen-Z consumers.
Furthermore, Tapestry is not relying on discounting to drive growth, as evidenced by increasing average unit retail prices and healthy margins. The brand’s appeal is not limited to a single product or region, with strength observed across various categories and geographical areas. Despite a conservative growth guidance for the second half of the year, the company’s consistent performance in exceeding earnings and sales expectations suggests a resilient business model. Therefore, Sherman recommends buying the stock, particularly during market dips, maintaining a price target of $115.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $126.00 price target.