Will Analyst Upgrades and Growth Scores Reshape Tapestry's (TPR) Long-Term Investment Narrative?

• In the past week, Tapestry received upward earnings estimate revisions from multiple analysts for fiscal 2026, reflecting increased optimism about its growth outlook and operational performance, particularly for its Coach brand.
• An interesting insight is that Tapestry earned top rankings with an A in the Growth Style Score and a B in the VGM Score, confirming its position on investors’ watchlists for long-term potential.
• We'll take a look at how these analyst upgrades and the strong Growth Style Score may reinforce Tapestry's investment narrative for long-term growth.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 26 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

Tapestry Investment Narrative Recap

To be a Tapestry shareholder, you need to believe in the company's ability to sustain growth and margin improvement, anchored by the Coach brand's continued strength, while successfully managing challenges such as brand turnaround efforts at Kate Spade and profitability pressures from tariffs. The recent analyst upgrades and strong Growth Style Score reinforce optimism around earnings growth, but the short-term catalyst remains the execution of a successful Coach-led growth strategy. These updates do not materially change the main risk, which still centers on Kate Spade's turnaround.

Among recent company announcements, the 14% increase in Tapestry's quarterly dividend is especially relevant for investors, as it reflects ongoing confidence in long-term cash flow generation despite last year's major impairment and volatility in segment performance. This move highlights management's commitment to shareholder returns, which may encourage patience as the company works through operational and market-related challenges tied to its various brands.

On the other hand, investors should be aware that despite strong signals from the Coach brand, challenges in restoring Kate Spade to stable and profitable growth remain unresolved...

Read the full narrative on Tapestry (it's free!)

Tapestry's outlook forecasts $7.8 billion in revenue and $1.4 billion in earnings by 2028. This is based on an expected annual revenue growth rate of 3.6% and a substantial earnings increase of about $1.22 billion from current earnings of $183.2 million.

Uncover how Tapestry's forecasts yield a $114.56 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members for Tapestry stock range from US$113.63 to US$130.57, with each investor projecting a distinct earnings growth scenario. As you consider these varied assessments, remember that ongoing brand recovery efforts at Kate Spade could influence revenue visibility and earnings quality across the group.

Explore 3 other fair value estimates on Tapestry - why the stock might be worth just $113.63!

Build Your Own Tapestry Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tapestry research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Tapestry research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tapestry's overall financial health at a glance.

Interested In Other Possibilities?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• This technology could replace computers: discover 23 stocks that are working to make quantum computing a reality.
• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com