Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Jefferies has raised its price target on Tapestry Inc. (NYSE:TPR) to $125.00 from $120.00 while maintaining a Buy rating on the luxury fashion company’s stock. The move comes as Tapestry demonstrates remarkable momentum, with a 156.81% return over the past year and impressive gross profit margins of 75.44%, according to InvestingPro data.
The investment firm’s updated outlook follows its attendance at Tapestry’s Investor Day, where it gained a more positive perspective on the company’s ability to sustain durable growth through innovation, a refocused total addressable market, and learnings from recent years.
Jefferies views Tapestry’s medium-term guidance, which management described as the "floor," as both achievable and compelling for investors.
The firm expects the market to continue rewarding Tapestry stock as the company delivers steady execution, though it notes that performance expectations have now been set higher.
Jefferies also highlighted that the turnaround of Kate Spade remains to be determined and could provide additional upside potential for the stock.
In other recent news, Tapestry, Inc. has announced a $3 billion share buyback program and set new financial targets through fiscal year 2028. The company plans to return a total of $4 billion to shareholders by 2028 through share repurchases and dividends, supported by strong free cash flow. Tapestry aims to maintain its annual dividend at $1.60 per share in 2026 and expects to grow the dividend in line with earnings growth, targeting a payout ratio of approximately 30% through fiscal 2028. Additionally, Tapestry forecasts low double-digit earnings per share (EPS) growth for fiscal years 2027 and 2028 as part of its "Amplify" growth strategy. In another development, the board approved a $15 million special equity grant for CEO Joanne Crevoiserat, tied to performance and time-based stock units. Analyst firms have also weighed in, with TD Cowen reiterating a Buy rating, citing Tapestry’s strong value proposition. Meanwhile, Bernstein raised its price target to $112, maintaining an Outperform rating, despite noting a tariff headwind affecting fiscal year 2026 margins.
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