Paul Lejuez, an analyst from Citi, maintained the Buy rating on Tapestry. The associated price target remains the same with $124.00.
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Paul Lejuez has given his Buy rating due to a combination of factors including the expectation that Tapestry’s first-quarter earnings per share (EPS) will surpass both consensus and company guidance. He anticipates EPS of $1.30, higher than the consensus of $1.26 and the guidance of approximately $1.25, driven by a 13.3% increase in sales. This positive outlook is supported by strong performance from the Coach brand and improving trends at both Coach and Kate, as indicated by web and foot traffic data.
Lejuez also expects management to adjust their annual guidance upwards, reflecting the anticipated first-quarter beat. He projects an increase in full-year EPS guidance to a range of $5.34 to $5.49, compared to the previous guidance of $5.30 to $5.45. Additionally, he foresees a slight rise in operating margin guidance, which aligns with his positive outlook on Tapestry’s financial performance. Despite the stock’s significant gains over the past year, Lejuez remains optimistic about its future potential.
In another report released today, Raymond James also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 54 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.