TD Cowen analyst Oliver Chen maintained a Hold rating on Tapestry (TPR – Research Report) today and set a price target of $90.00.
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Oliver Chen’s rating is based on a combination of positive results and strategic considerations. Tapestry reported strong second-quarter earnings that surpassed expectations, largely driven by impressive performance from the Coach brand. The increase in the price target reflects the expectation of continued growth and gross margin expansion for Coach, which has outperformed its peers. However, the stock’s current trading price is significantly above its historical average, suggesting that it may be overvalued at present.
Nevertheless, Oliver Chen remains cautious due to potential challenges and the need for further innovation, particularly at Kate Spade, which accounts for a smaller portion of Tapestry’s business. While the Coach brand’s recent success is promising, Chen is opting for a Hold rating, recognizing that sustained strong performance is necessary to justify further upside. The focus on new product introductions and strategic management initiatives will be crucial for Tapestry’s future trajectory.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TPR in relation to earlier this year.