Evercore ISI Group maintains Outperform, PT down to $125 for Tapestry.

Evercore ISI Group maintains Outperform, PT down to $125 for Tapestry.

Evercore ISI Group has maintained its "Outperform" rating for Tapestry Inc. (NYSE: TPR) while reducing its price target to $125, down from the previous $130. The adjustment reflects the company's recent performance and the firm's assessment of the market conditions.

The latest update comes amidst increased tariff pressure, which is expected to create a $0.60 headwind to earnings per share. Despite this challenge, Tapestry has provided fiscal 2026 guidance of $5.30-$5.45 EPS, which falls below consensus estimates. The company maintains impressive gross profit margins of 75% [2].

Evercore ISI believes that Coach, Tapestry’s flagship brand, continues to demonstrate strong sales momentum and expects it to deliver "several more quarters of outsized growth." The firm has raised its fiscal 2026 EPS estimate by 3% to $5.39, reflecting better SG&A leverage. For fiscal 2027, Evercore ISI lowered its EPS estimate by 2% to $5.62, citing increased gross margin pressure as tariffs flow through the business. The company’s guidance includes mid-single-digit revenue growth for the coming period [3].

The new $125 price target is based on a 20x price-to-earnings multiple on fiscal 2027 estimated earnings, according to Evercore ISI’s report. The stock is currently trading at $109.09, near its 52-week high of $113.08, having delivered an impressive 191.92% return over the past year [3].

Other recent developments include notable attention from several investment firms. UBS has raised its price target for Tapestry to $112, emphasizing the strong performance of the Coach brand during the fourth quarter and into the first quarter. UBS maintains a Neutral rating on the stock but anticipates solid guidance for the upcoming fiscal year. Meanwhile, Raymond James has also increased its price target to $115, citing Tapestry’s growth potential through various strategic initiatives such as innovation and marketing. The firm continues to rate the company as Outperform, indicating confidence in its long-term growth prospects. Additionally, Bernstein SocGen Group reiterated its Outperform rating with a $100 price target, pointing to the sustainable momentum of the Coach brand. Bernstein’s analysis is based on meetings with Tapestry’s leadership and surveys showing Coach’s appeal to younger consumers [3].

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References:
[1] https://www.investing.com/news/analyst-ratings/tapestry-stock-price-target-lowered-to-110-at-bofa-on-tariff-pressure-93CH-4193427
[2] https://www.investing.com/news/analyst-ratings/evercore-isi-raises-tapestry-stock-price-target-to-130-from-97-93CH-4182186
[3] https://www.ainvest.com/news/evercore-isi-group-maintains-outperform-raises-voya-financial-pt-86-2508/