BTIG Raises Price Target#
BTIG has increased its price target for Tapestry Inc. (NYSE: TPR) from $175 to $180, while maintaining a Buy rating on the stock. This adjustment reflects the firm's confidence in Tapestry's growth potential, particularly due to the strong performance of its Coach brand.
Revenue Growth and Earnings Estimates#
The firm anticipates an 11.8% revenue growth for Tapestry in its fiscal third quarter of 2026, largely driven by Coach, which is expected to see approximately 20% growth. BTIG also predicts an operating margin increase of 80 basis points, bringing it to 18.3%, despite challenges from U.S. tariffs affecting gross margins.
BTIG estimates earnings per share (EPS) for the third quarter to be $1.25, marking a 21% increase compared to the previous year. The new price target of $180 is based on 25 times the firm's EPS estimate for the calendar year 2027.
Strong Performance and Market Capitalization#
Tapestry's stock has performed exceptionally well, surging 118% over the past year and achieving a market capitalization of $29.65 billion. However, some analyses suggest that the stock is currently trading above its Fair Value, indicating it may be overvalued despite its strong fundamentals, including a gross profit margin of 76%.
Upcoming Earnings Report#
Tapestry is set to report its fiscal third quarter 2026 earnings on May 7, before the market opens. BTIG remains optimistic about the ongoing strength of Coach and other earnings drivers within the company. In recent news, Tapestry reported strong financial results for the second quarter of fiscal 2026, surpassing analyst expectations with an EPS of $2.69 and revenue of $2.5 billion, largely attributed to a 25% revenue increase from Coach. Following these results, several firms adjusted their price targets for Tapestry, reflecting the company's positive momentum.