Guggenheim analyst Robert Drbul maintained a Buy rating on Tapestry Inc (TPR) today and set a price target of $45. The company’s shares opened today at $33.36, close to its 52-week low of $30.05.
Drbul wrote:
“We are encouraged by the ‘green shoots’ materializing in the quarter, including a strong comp inflection at Kate Spade (8pts better QoQ and on-track to move positive in 4Q, in our view), growth at Stuart Weitzman (+MSD% in CC), continued steady +LSD% comps for the Coach brand, and importantly, the authorization of a $1bn share repurchase program at the company. At 12x our with shares yielding ~4%, we believe the risk/reward is favorable and expect to see progress in all three TPR brands over the next 12 months. We remain BUY-rated. The Coach brand continued to deliver +LSD% comp sales growth (+1% globally). In 3Q, Int’l comps outperformed NA, and e-commerce was strong (100bps benefit), similar to 2Q. Store comps aided by conversion, as well as traffic.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 11.4% and a 69.6% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Burlington Stores.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Tapestry Inc with a $46 average price target, implying a 37.9% upside from current levels. In a report issued on April 30, UBS also maintained a Buy rating on the stock with a $50 price target.
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Based on Tapestry Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $255 million. In comparison, last year the company had a net profit of $140 million.
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Tapestry, Inc. engages in the provision of luxury accessories and lifestyle brands. It operates through the following segments:Coach, Kate Spade, and Stuart Weitzman.
