TD Cowen analyst Oliver Chen maintained a Hold rating on Tapestry (TPR – Research Report) today and set a price target of $90.00.
Oliver Chen has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Tapestry. The company has shown impressive growth among Gen Z and international customers, with Coach experiencing accelerated growth driven by successful product launches. However, despite this positive momentum, there are concerns about continued pressure on Kate Spade’s sales and the overall revenue growth projections, which remain modest.
Another factor influencing the Hold rating is the valuation of Tapestry, which stands at a higher P/E ratio compared to its historical averages. Additionally, the company faces potential cost increases due to tariffs, which could impact earnings. While Tapestry is taking steps to mitigate these costs, such as leveraging a flexible supply chain, the uncertainty surrounding these factors contributes to a cautious outlook. Overall, the combination of growth potential and existing challenges leads to a balanced view, resulting in a Hold rating.
In another report released today, UBS also maintained a Hold rating on the stock with a $73.00 price target.