Tapestry Inc. (TPR) Shares Rally 0.37% to 52-Week High on Analyst Upgrades and Strategic Divestiture

Tapestry Inc. (TPR) shares climbed 0.37% on Wednesday, extending its winning streak to three consecutive days with a cumulative gain of 7.83% over the past week. The stock hit an intraday high of $118.37, marking its highest level since October 2025, driven by a 1.98% rally amid renewed investor confidence in the luxury brand operator.

Analyst optimism has been a key catalyst, with multiple upgrades and price target hikes reinforcing the stock's momentum. Wells Fargo & Co. raised its target to $120 from $100, while JPMorgan Chase & Co. increased its estimate to $142, reflecting confidence in Tapestry’s earnings resilience and brand positioning. The stock’s 52-week high aligns with improved institutional sentiment, as firms like Jump Financial LLC and Allworth Financial LP significantly boosted their holdings in Q1 2026.

Strategic moves have also bolstered the stock’s appeal. The divestiture of Stuart Weitzman in August 2025 streamlined operations, allowing Tapestry to focus on its core Coach and Kate Spade brands. Coach remains the revenue engine, contributing 80% of total sales, while Kate Spade’s vibrant design aesthetic supports 17% of revenue. These brands position Tapestry to capitalize on sustained demand for luxury accessories in key markets.

However, risks persist. Tapestry’s elevated debt-to-equity ratio of 2.77 and a payout ratio of 253.97% highlight financial vulnerabilities, raising questions about dividend sustainability. Insider selling in late 2025, including a 58.13% reduction in shares by Director Alan Ka Ming Lau, introduced short-term uncertainty. While institutional buying and strong earnings momentum offset these concerns, investors remain cautious about valuation risks, given the stock’s 185.80 PE ratio and beta of 1.57.

Overall, Tapestry’s stock reflects a balance of optimism and caution. Analysts’ elevated price targets and institutional support suggest confidence in long-term growth, but debt management and operational efficiency will be critical to sustaining the recent rally. The company’s ability to maintain earnings surprises and navigate economic volatility will shape its trajectory in the luxury retail sector.