Wall Street Zen Upgrades Tapestry (NYSE:TPR) to "Strong-Buy"

Key Points

• Wall Street Zen upgraded Tapestry from “buy” to “strong-buy”, adding to a generally bullish analyst backdrop. Overall, MarketBeat data shows two Strong Buy ratings, fifteen Buy ratings, and four Hold ratings, with a consensus Moderate Buy and an average price target of $160.67.
• Tapestry reported a strong fiscal quarter, with EPS of $1.66 versus the expected $1.31 and revenue of $1.92 billion versus the $1.79 billion consensus. Revenue rose 21.2% year over year, and the company also raised full-year guidance.
• Despite the upbeat results, the stock faced some pressure as investors weighed tariff concerns and weaker performance at Kate Spade. Insider selling and a highly owned institutional base were also notable, with 90.77% of shares held by hedge funds and other institutions.

Tapestry (NYSE:TPR - Get Free Report) was upgraded by analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

Other equities analysts also recently issued research reports about the company. TD Cowen reiterated a "buy" rating on shares of Tapestry in a research note on Tuesday, February 10th. Robert W. Baird lifted their price target on Tapestry from $160.00 to $165.00 and gave the company an "outperform" rating in a research note on Wednesday, April 29th. Citigroup lifted their price target on Tapestry from $165.00 to $170.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Wells Fargo & Company lifted their price target on Tapestry from $142.00 to $165.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. Finally, UBS Group raised shares of Tapestry from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $142.00 to $187.00 in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $160.67.

Tapestry Stock Performance

Shares of TPR opened at $133.43 on Friday. The company has a debt-to-equity ratio of 3.48, a current ratio of 1.84 and a quick ratio of 1.10. The stock has a 50-day moving average of $146.44 and a 200-day moving average of $132.25. The company has a market cap of $27.01 billion, a PE ratio of 42.77, a P/E/G ratio of 1.45 and a beta of 1.45. Tapestry has a one year low of $76.29 and a one year high of $161.97.

Tapestry (NYSE:TPR - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The luxury accessories retailer reported $1.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.31 by $0.35. The business had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.79 billion. Tapestry had a return on equity of 229.70% and a net margin of 8.44%.The company's quarterly revenue was up 21.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.03 EPS. Tapestry has set its FY 2026 guidance at 6.950-6.950 EPS. On average, equities research analysts predict that Tapestry will post 6.95 EPS for the current fiscal year.

Insider Buying and Selling at Tapestry

In other Tapestry news, Director Anne Gates sold 6,498 shares of the business's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $153.79, for a total transaction of $999,327.42. Following the sale, the director owned 22,698 shares of the company's stock, valued at $3,490,725.42. The trade was a 22.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Manesh Dadlani sold 2,147 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $153.47, for a total transaction of $329,500.09. Following the sale, the vice president directly owned 18,475 shares in the company, valued at $2,835,358.25. The trade was a 10.41% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 164,956 shares of company stock worth $25,297,262. Company insiders own 1.32% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp boosted its position in Tapestry by 3.8% during the fourth quarter. State Street Corp now owns 9,578,111 shares of the luxury accessories retailer's stock valued at $1,223,795,000 after buying an additional 348,334 shares during the period. Schroder Investment Management Group boosted its position in Tapestry by 92.8% during the fourth quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer's stock valued at $1,194,678,000 after buying an additional 4,500,850 shares during the period. Geode Capital Management LLC boosted its position in Tapestry by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 5,912,917 shares of the luxury accessories retailer's stock valued at $753,482,000 after buying an additional 203,764 shares during the period. AQR Capital Management LLC boosted its position in Tapestry by 21.4% during the third quarter. AQR Capital Management LLC now owns 4,307,615 shares of the luxury accessories retailer's stock valued at $487,708,000 after buying an additional 760,646 shares during the period. Finally, Morgan Stanley boosted its position in Tapestry by 8.9% during the fourth quarter. Morgan Stanley now owns 3,327,212 shares of the luxury accessories retailer's stock valued at $425,118,000 after buying an additional 270,973 shares during the period. 90.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Tapestry

Here are the key news stories impacting Tapestry this week:

• Positive Sentiment: Tapestry beat fiscal third-quarter expectations, posting EPS of $1.66 on revenue of $1.92 billion, and also raised full-year guidance, which points to improving business momentum. Business Wire release
• Positive Sentiment: JPMorgan raised its price target on TPR to $200 from $190 and kept an overweight rating, signaling confidence in further upside from current levels. Benzinga report
• Positive Sentiment: BTIG reaffirmed a buy rating and set a $180 target, adding to the list of analysts turning more constructive after the earnings update. Benzinga report
• Neutral Sentiment: Tapestry announced a quarterly dividend of $0.40 per share, which supports shareholder returns but is not a major near-term catalyst. Earnings transcript
• Negative Sentiment: Despite the earnings beat, shares were pressured by concerns about tariffs and weaker performance at Kate Spade, suggesting investors are focusing on margin and brand-mix risks. Zacks article

About Tapestry

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry's operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.

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