Guggenheim analyst Robert Drbul maintains $Tapestry (TPR.US)$ with a buy rating, and adjusts the target price from $60 to $70.
According to TipRanks data, the analyst has a success rate of 55.9% and a total average return of 6.2% 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 selected for the Analyst Focus List as a value pick following the termination of the planned merger with Capri Holdings. Tapestry is prioritizing the strength of Coach and the return to sustainable sales growth for Kate Spade before considering future acquisitions. The stock is seen as undervalued at its current trading price.
Following the mutually agreed termination of the planned merger between the company and Capri, it is deemed a 'prudent' move as both entities prioritize the reallocation of their resources and time to concentrate on their individual portfolios. With the conclusion of the merger discussions, there continues to be an opportunity for value creation within the company's existing portfolio.
Tapestry's recently halted agreement with Capri Holdings has led to the redemption of the related deal debt and the proclamation of a $2 billion share repurchase plan, which is expected to contribute a minimum of $0.75 to earnings per share. The analyst notes the potential for an approximate $6.00 earnings per share by fiscal year 2026, and suggests that a valuation multiple of 15 times could present a bullish scenario with significant upside.
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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