Tapestry Inc. (TPR) Surges 4.28% on JPMorgan Upgrade, Strong February Revenue

Tapestry Inc. (TPR) shares climbed to a peak not seen since September 2025, with an intraday gain of 1.81%, as the stock extended its three-day winning streak to a cumulative 4.28% rise. The rally reflects growing investor confidence in the luxury fashion conglomerate’s strategic initiatives and financial resilience.

A key driver of the recent momentum was JPMorgan’s price target upgrade, which lifted its estimate for Tapestry from $139 to $142 per share while retaining an “overweight” rating. The move followed the company’s strong revenue performance in February 2025, where it surpassed constant currency revenue expectations and raised full-year guidance. Analysts highlighted Tapestry’s ability to navigate challenges such as the abandoned Capri Holdings acquisition, underscoring its operational flexibility.

Shareholder returns have also gained prominence, with Tapestry unveiling a $3 billion stock repurchase program through 2028 and a 14% dividend increase to $0.40 per share. These actions aim to capitalize on the company’s robust free cash flow and bolster earnings per share through reduced share counts. However, analysts caution that sustained cash flow generation will be critical to supporting these commitments amid ongoing net losses and brand-specific hurdles.

Recent financial results further reinforced optimism. Tapestry’s “beat-and-raise” quarter demonstrated resilience, with elevated full-year guidance and a 68.1% year-to-date stock surge. Despite a temporary EPS miss due to a one-time debt charge, the company maintained its growth trajectory. Long-term investors have reaped significant rewards, with a $1,000 investment in 2020 now valued at $6,550.

While analysts project a fair value of $116.44 per share—a 9% premium to current levels—the path to unlocking this potential remains contingent on strategic execution. Tapestry’s investments in digital infrastructure and premiumization strategies are seen as catalysts for margin expansion. However, risks persist, particularly at the Kate Spade brand, which has incurred $850 million in impairment charges and requires a turnaround to avoid weighing on overall performance.