Update shared on 20 Oct 2025
Fair value Increased 0.98%Global Markets And Digital Capabilities Will Shape Future Upside
Tapestry's analyst price target increased by approximately $1.16 to $119.16. Analysts cite ongoing brand momentum, strong long-term guidance, and tariff resilience as supporting factors for the upward revision.
Analyst Commentary
Recent research notes from major brokerages and industry analysts reveal a mix of optimism and caution regarding Tapestry's financial outlook, brand trajectory, and valuation drivers. These recommendations highlight key factors influencing price target adjustments and confidence in the company's execution.
Bullish Takeaways
- Bullish analysts emphasize ongoing brand momentum, with Coach expected to deliver several more quarters of outsized growth and continue contributing to group achievement.
- The company’s updated multi-year financial guidance and new targets to 2028 are seen as conservative. Some analysts suggest the current three-year plan could serve as a floor and offer potential upside.
- Resilience to tariffs and the demonstrated ability to mitigate duty pressures contribute positively to profit expansion and margin support. This reinforces analysts’ conviction in the company’s long-term execution.
- Despite a lack of imminent catalysts, consensus holds that shares could grind higher over time. This view is supported by stable buybacks, new store growth, and likely secular tailwinds in the handbag category.
Bearish Takeaways
- Bearish analysts caution that modest guidance for FY26, which falls below some buy-side expectations, has led to price target reductions and recent price pullbacks.
- Incremental tariff pressure continues to weigh on earnings growth projections. Some analysts view this as a cloud over Tapestry’s near-term profit potential.
- The outlook for significant earnings surprises or near-term catalysts is limited. As a result, some analysts remain on the sidelines due to these headwinds.
- While underlying fundamentals remain solid, there are concerns that “lesser” beats may be ahead, especially if macroeconomic conditions become more challenging or if tariff headwinds intensify.
What's in the News
- Coach celebrates the publication of "BAG MAN: The Story Behind the Improbable Rise of Coach" by former CEO Lew Frankfort. The book offers business insights and reflections on brand leadership (Key Developments).
- Coach debuts its Spring 2026 collection in New York City, introducing new silhouettes, textures, and finishes. The collection presents a fresh take on personal style and draws inspiration from urban streetwear (Key Developments).
- Tapestry announces a share repurchase program of up to $3 billion, supported by strong free cash flow. The program will be effective through fiscal year 2028 (Key Developments).
- The Board of Directors authorizes a new buyback plan effective September 2025 (Key Developments).
- Tapestry’s Board of Directors approves a 14% dividend increase, bringing the anticipated annual dividend rate to $1.60 per share (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $118 to approximately $119.16.
- Discount Rate has fallen marginally, declining from 8.88% to 8.85%.
- Revenue Growth expectations have increased slightly, moving from 3.93% to 3.95%.
- Net Profit Margin has edged down fractionally, shifting from 16.84% to 16.83%.
- Future P/E ratio is slightly higher, rising from 19.19x to 19.36x.
Disclaimer
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