Jefferies Downgrades Tapestry to Hold, Valuation Exceeds Historical Levels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
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.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 155.000
Low
120.00
Averages
136.57
High
155.00
Current: 155.000
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.
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