Wells Fargo & Company Forecasts Strong Price Appreciation for Tapestry (NYSE:TPR) Stock

Key Points

• Wells Fargo & Company has raised Tapestry's price target from $100.00 to $120.00, indicating a potential upside of 24.99% from its previous close.
• Despite recent analyst upgrades, Tapestry's stock has decreased by 15.4%, trading at $96.01 with a market cap of $19.94 billion.
• Tapestry reported a strong quarterly performance, with earnings per share (EPS) of $1.04, surpassing analyst expectations of $1.02, and revenue of $1.72 billion, up 8.3% year-over-year.

Tapestry (NYSE:TPR - Get Free Report) had its price target boosted by equities research analysts at Wells Fargo & Company from $100.00 to $120.00 in a research note issued on Thursday, MarketBeat.com reports. The brokerage currently has an "overweight" rating on the luxury accessories retailer's stock. Wells Fargo & Company's target price would suggest a potential upside of 18.93% from the stock's current price.

Several other analysts have also recently commented on the company. Bank of America cut Tapestry from a "buy" rating to a "neutral" rating and increased their target price for the stock from $95.00 to $115.00 in a report on Tuesday, July 29th. UBS Group restated a "neutral" rating and set a $112.00 target price (up previously from $73.00) on shares of Tapestry in a report on Monday, August 4th. Morgan Stanley increased their target price on Tapestry from $90.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Barclays restated an "overweight" rating and set a $105.00 target price (up previously from $98.00) on shares of Tapestry in a report on Friday, July 11th. Finally, Telsey Advisory Group restated an "outperform" rating and set a $125.00 target price (up previously from $92.00) on shares of Tapestry in a report on Monday, August 11th. Four equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $105.47.

Tapestry Price Performance

Tapestry stock traded up $5.21 during mid-day trading on Thursday, hitting $100.90. 6,808,522 shares of the company were exchanged, compared to its average volume of 4,635,487. The company has a quick ratio of 1.22, a current ratio of 1.87 and a debt-to-equity ratio of 2.77. The business has a fifty day moving average of $96.88 and a 200 day moving average of $82.73. Tapestry has a 1-year low of $39.10 and a 1-year high of $114.05. The company has a market capitalization of $20.96 billion, a PE ratio of 160.16, a price-to-earnings-growth ratio of 2.06 and a beta of 1.51.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The luxury accessories retailer reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.02. Tapestry had a return on equity of 68.02% and a net margin of 2.61%. The firm had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.67 billion. During the same period in the prior year, the company posted $0.92 earnings per share. The business's revenue for the quarter was up 8.3% compared to the same quarter last year. As a group, sell-side analysts expect that Tapestry will post 4.91 earnings per share for the current year.

Institutional Investors Weigh In On Tapestry

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Tapestry by 2.4% in the 2nd quarter. Vanguard Group Inc. now owns 25,902,930 shares of the luxury accessories retailer's stock valued at $2,274,536,000 after buying an additional 606,686 shares during the last quarter. Ameriprise Financial Inc. raised its position in Tapestry by 4.8% in the 4th quarter. Ameriprise Financial Inc. now owns 8,092,843 shares of the luxury accessories retailer's stock valued at $527,799,000 after buying an additional 370,784 shares during the last quarter. Geode Capital Management LLC raised its position in Tapestry by 3.0% in the 2nd quarter. Geode Capital Management LLC now owns 5,500,858 shares of the luxury accessories retailer's stock valued at $482,125,000 after buying an additional 158,782 shares during the last quarter. SRS Investment Management LLC raised its position in Tapestry by 12.4% in the 2nd quarter. SRS Investment Management LLC now owns 5,332,824 shares of the luxury accessories retailer's stock valued at $468,275,000 after buying an additional 589,000 shares during the last quarter. Finally, Schroder Investment Management Group raised its position in Tapestry by 1,661.6% in the 2nd quarter. Schroder Investment Management Group now owns 4,002,818 shares of the luxury accessories retailer's stock valued at $351,487,000 after buying an additional 3,775,593 shares during the last quarter. Institutional investors and hedge funds own 90.77% of the company's stock.

Tapestry Company Profile

Tapestry, Inc provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women's handbags; and women's accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms.