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Investing.com - Bernstein SocGen Group raised its price target on Tapestry Inc. (NYSE:TPR) to $112.00 from $100.00 on Friday, while maintaining an Outperform rating on the luxury goods company. The stock, currently trading at $98.89, has delivered an impressive 47.76% return year-to-date, according to InvestingPro data.
The firm’s decision follows Tapestry’s strong fourth-quarter performance, despite fiscal year 2026 margin guidance being impacted by what Bernstein described as a "surprisingly large tariff headwind" of approximately 75 basis points. The company maintains impressive gross profit margins of 75.44%, though InvestingPro analysis suggests the stock is trading above its Fair Value.
Bernstein noted that the market reaction to the tariff impact was "outsized" given that it was unrelated to the company’s fundamental performance, particularly highlighting the Coach brand as a "clear outperformer globally."
The research firm adjusted its fiscal year 2027 earnings per share estimate downward from $6.71 to $6.23 to account for the tariff impact, but simultaneously increased its earnings multiple from 17x to 18x based on continued quality and outperformance.
Bernstein projects a multi-year, low double-digit percentage earnings growth pathway for Tapestry going forward, supporting its decision to maintain the Outperform rating while raising the price target.
In other recent news, Tapestry Inc. reported stronger-than-expected earnings for the fourth quarter of 2025, with earnings per share (EPS) of $1.04, surpassing the forecasted $1.00. The company’s revenue also exceeded expectations, reaching $1.72 billion compared to the anticipated $1.67 billion. Despite these positive results, Tapestry is facing increased tariff pressure, which BofA Securities notes could create a $0.60 headwind to future earnings per share. As a result, BofA has lowered its price target for Tapestry to $110.00 while maintaining a Neutral rating. Meanwhile, CFRA has raised its price target to $96.00 from $93.00, maintaining a Hold rating. Morgan Stanley continues to see potential in Tapestry, reiterating its Overweight rating with a price target of $115.00, despite recent stock pressure. These developments reflect the mixed analyst sentiment surrounding the company amid tariff concerns and recent earnings performance.
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