Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - BofA Securities has lowered its price target on Tapestry Inc. (NYSE:TPR) to $110.00 from $115.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock has delivered an impressive 75% return year-to-date, though current analysis suggests it may be trading above its Fair Value.
The adjustment comes as Tapestry faces increased tariff pressure, which is expected to create a $0.60 headwind to earnings per share, according to BofA’s analysis. Despite this challenge, the company provided fiscal 2026 guidance of $5.30-$5.45 EPS, which falls below consensus estimates. The company maintains impressive gross profit margins of 75%, as revealed by InvestingPro data.
BofA notes that Coach , Tapestry’s flagship brand, continues to demonstrate strong sales momentum and expects it to deliver "several more quarters of outsized growth." The firm has raised its fiscal 2026 EPS estimate by 3% to $5.39, reflecting better SG&A leverage.
For fiscal 2027, BofA lowered its EPS estimate by 2% to $5.62, citing increased gross margin pressure as tariffs flow through the business. The company’s guidance includes mid-single-digit revenue growth for the coming period.
The new $110 price target is based on a 20x price-to-earnings multiple on fiscal 2027 estimated earnings, according to BofA Securities’ report.
In other recent news, Tapestry Inc. reported impressive financial results for the fourth quarter of 2025. The company achieved earnings per share (EPS) of $1.04, surpassing both the previous year’s $0.92 and the forecasted $1.00. Revenue for the quarter reached $1.72 billion, exceeding expectations of $1.67 billion. Despite these strong earnings and revenue figures, Tapestry’s stock experienced a decline. In response to these developments, CFRA raised its price target for Tapestry to $96 from $93 while maintaining a Hold rating. These recent developments highlight the mixed reactions from the market and analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.