Analyst Aneesha Sherman of Bernstein maintained a Buy rating on Tapestry, retaining the price target of $112.00.
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Aneesha Sherman’s rating is based on Tapestry’s promising growth prospects and strategic positioning. The management’s optimistic outlook at the 2025 Investor Day highlighted a long-term algorithm of low double-digit percentage earnings growth, which slightly exceeded market expectations. This growth is supported by the Coach brand’s potential for global expansion, with unit growth turning positive and average unit retail gains continuing.
Furthermore, the valuation of Tapestry’s stock suggests additional upside potential. Trading at 17 times its FY27 earnings, it remains undervalued compared to similar high-quality brands like Ralph Lauren. The potential for margin improvement and a modest increase in market estimates further supports the Buy rating, with a price target set at $112.
In another report released today, Barclays also maintained a Buy rating on the stock with a $127.00 price target.