Goldman Sachs analyst Brooke Roach maintains $Tapestry (TPR.US)$ with a buy rating, and adjusts the target price from $58 to $66.
According to TipRanks data, the analyst has a success rate of 52.6% and a total average return of 3.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Tapestry (TPR.US)$'s main analysts recently are as follows:
Tapestry has been highlighted as a value selection following the cancellation of a planned merger with Capri Holdings. Tapestry's strategy focuses on maintaining the robust performance of Coach and achieving sustainable sales growth for Kate Spade before considering further acquisitions. The stock is currently seen as undervalued.
The decision to terminate the planned merger between Tapestry and Capri is considered 'prudent' as it allows both companies to prioritize the reallocation of their resources and attention to their respective portfolios. With the merger chapter concluded, there remains an opportunity for value creation within Tapestry's existing portfolio.
Tapestry's recently called-off transaction with Capri Holdings has led to the redemption of deal-related debt and the announcement of a $2 billion share repurchase program. This buyback is expected to contribute a minimum of 75 cents to earnings per share. Looking ahead to fiscal year 2026, the anticipated earnings per share could reach approximately $6.00, suggesting significant valuation potential.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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