Tapestry Spikes Over 9% As Deutsche Bank Turns Bullish
Shares of Tapestry are advancing over 9% in morning trading after Deutsche Bank upgraded the retailer to Buy from Hold amid “strong digital trends”.
Deutsche Bank analyst Paul Trussell said that “We believe TPR (TPR) will be a beneficiary of the current trend that appears to be accelerating the shift to digital.” Trussell lifted the stock’s price target to $21 (14.3% upside potential) from $18.
Last month, Tapestry, the owner of Coach and Kate Spade brands, reported a 4Q loss of $0.25 per share. Analysts had anticipated loss of $0.57 per share. Tapestry’s 4Q revenues of $714.8 million also topped analysts’ expectations of $663 million. The upbeat results were driven by strong online business, which offset the negative impact from store closures amid the coronavirus pandemic. The company forecasts flat revenue growth in fiscal 2021 year-over-year and expects a gradual recovery ahead. (See TPR stock analysis on TipRanks).
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 6 Holds. The average price target of $19.33 implies upside potential of about 5.1% to current levels. Shares have plunged 35.1% year-to-date.
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