Jefferies Downgrades Tapestry to Hold, Valuation Exceeds Historical Levels
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
- Rating Downgrade: Jefferies downgraded Tapestry from Buy to Hold, indicating that the stock's near-term upside is already reflected in its valuation after a 31% increase over the past six months.
- Valuation Analysis: Tapestry currently trades at a forward P/E in the low 20s, significantly above its historical average of about 12x and 16x for peers, suggesting potential for a valuation correction.
- Potential Catalysts and Risks: While a strong December quarter and possible tariff repeal could act as catalysts, Jefferies warns of risks from cooling brand momentum and increased discounting among younger consumers in the U.S.
- EPS Forecast and Price Target: Jefferies set a price target of $138 for Tapestry, based on a 21.5x multiple of its FY27 EPS estimate of $6.42, raising concerns about the sustainability of growth given the current high valuation.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like TPR with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on TPR
Wall Street analysts forecast TPR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPR is 136.57 USD with a low forecast of 120.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 126.000
Low
120.00
Averages
136.57
High
155.00
Current: 126.000
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Larger Tax Refunds on the Way: Which Retailers Will Benefit the Most?
Impact on Wealthier Shoppers: Wealthier shoppers are expected to benefit significantly from President Trump's new tax bill, which is likely to provide them with larger refunds.
Retailers' Advantage: Retailers that cater to wealthier consumers are positioned to gain the most from the economic changes brought about by the tax bill.
Continue Reading
Tapestry Inc. Launches Seasonal Pattern with 192% ROI Starting Now
- Tapestry Inc. Pattern Launch: Tapestry Inc.'s seasonal trading pattern has commenced, with an expected ROI of 192% over 35 days, reflecting strong consumer confidence and market potential.
- Costco's Defensive Strategy: Costco's seasonal pattern will kick off in February for 13 days, with a projected ROI of 50%, showcasing its effective wholesale model that performs well in volatile markets, thereby enhancing its market position.
- Gold ETF Timing: The SPDR Gold ETF's seasonal pattern starts in March, with an anticipated ROI of 153%, making it a preferred defensive investment as gold prices reach all-time highs.
- Progressive's Stable Performance: Progressive's seasonal pattern will begin on May 16, lasting 50 days, historically achieving a 128% return, demonstrating its strong profitability and stability amid market fluctuations.
Continue Reading