Update shared on12 Sep 2025
Fair value Increased 1.65%Analysts have raised Tapestry’s price target to $116.44, citing ongoing growth momentum for Coach, upwardly revised EPS estimates from enhanced financial targets and buybacks, and confidence in multi-year guidance, despite near-term tariff headwinds and cautious sentiment following a strong share rally.
Analyst Commentary
- Bullish analysts highlight continued strong momentum and secular tailwinds for the Coach brand, expecting ongoing outsized growth and significant gross margin upside driven by robust brand execution and steady full-price selling.
- Several analysts raise EPS estimates and price targets in response to new financial targets, increased stock buybacks, expanded store contributions, and tariff mitigation efforts outlined at investor and analyst days.
- Bullish analysts point to Tapestry’s fiscal 2026 and 2028 guidance, with expectations that these multi-year plans serve as a solid floor with upside potential, even if near-term catalysts are lacking.
- Tariff headwinds are a recurring concern, with bearish analysts noting EPS guidance coming in below consensus and trade duties pressuring short-term growth, but underlying profit expansion is still seen as noteworthy.
- Some caution is observed following a substantial year-to-date stock price rally, with pullbacks attributed mainly to conservative guidance amid tariff pressures rather than weakening fundamentals.
What's in the News
- Tapestry announced a new share repurchase program of up to $3 billion, valid through fiscal year 2028, funded by strong free cash flow.
- The company completed the repurchase of 28,363,766 shares (12.17% outstanding) for $2 billion under the buyback announced in November 2024.
- The Board approved a 14% dividend increase, setting a new annual dividend rate of $1.60 per share.
- Tapestry was added to several major Russell growth indices, including the Russell 1000, 2500, 3000, and Midcap Growth indices, enhancing its index representation.
- Tapestry held an Analyst/Investor Day to highlight long-term strategic growth initiatives and financial outlook.
Valuation Changes
Summary of Valuation Changes for Tapestry
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $114.56 to $116.44.
- The Consensus Revenue Growth forecasts for Tapestry has risen from 3.6% per annum to 3.9% per annum.
- The Future P/E for Tapestry remained effectively unchanged, moving only marginally from 18.03x to 18.33x.
Disclaimer
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