Retail

Tapestry Joins Ranks of Beating Earnings, Scoring Analyst Upgrades and Challenging Highs

Jon C. Ogg

Published: February 7, 2018 12:15 pm

Last Updated: January 12, 2020 3:38 am

You don’t need to bother telling Tapestry Inc. (NYSE: TPR) that the market went into a brief panic earlier this week. The company most investors remember as Coach, prior to the Kate Spade and Stuart Weitzman deals, just challenged a 52-week high. Its shares are also almost at the highest level since the end of 2013 and start of 2014.

Tapestry reported its most recent quarterly results this week and had $1.07 in earnings per share (EPS) on $1.79 billion in revenue, compared with consensus estimates that called for $0.86 in EPS on $1.77 billion in revenue. In terms of its segments, Coach sales rose 2% to $1.23 billion and global same-store sales were up 3% in the quarter. Kate Spade revenue totaled $435 million, and global same-store sales dropped 7%.

One kicker driving more interest in the shares was that Tapestry raised its full 2018 guidance to $2.52 to $2.60 in earnings per share from a prior 2018 range of $2.35 to $2.40 per share.

24/7 Wall St. has been featuring companies that are beating earnings expectations and also seeing shares rise along with analyst upgrades and price target hikes. That has been the case for Tapestry, even if some analysts have only adjusted target prices on Neutral and Hold ratings.

Piper Jaffray raised its rating to Overweight from Neutral and set a $54 price target.

These are some of the top analyst calls with key price target hikes:

• Barclays has an Equal Weight rating but raised its target price to $51 from $47.
• BMO Capital Markets maintained its Market Perform rating but raised its target to $46 from $42.
• Merrill Lynch maintained its Neutral rating but raised its price objective to $50 from $47.
• Buckingham Research has a Buy rating and raised its target price from $55 to $56.
• Canaccord Genuity maintained its Buy rating and raised its target price to $59 from $58.
• Cowen reiterated its Buy rating and raised its target price from $54 to $56.
• KeyBanc Capital Markets maintained its Overweight rating and raised its target to $59 from $53.
• RBC Capital Markets raised its price objective to $53 from $46.
• Susquehanna reiterated its Positive rating and raised its target to $60 from $57.

24/7 Wall St.
10 Lessons of Sanity From Warren Buffett During Insane Markets

Morgan Stanley has an Underweight rating on Tapestry, but even it raised its target price to $38 from $37.

Tapestry shares were last seen up 2.2% at $50.12, after its shares hit a $52-week high of $50.60. Its consensus analyst target price from Thomson Reuters was $52.86. That consensus target was closer to $49 a month earlier and to $48.50 just two months ago.