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Research Alert: CFRA Raises Opinion On Shares Of Tapestry, Inc. To Buy From Hold

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $24 to $170, based on 21.9x our FY 27 (Jun.) EPS estimate and higher than the company's three-year average forward P/E multiple of 13.7x. In recent quarters, shares have traded above 20x consensus EPS estimates for the next 12 months, as the company has outperformed peers and expanded margins. We think the recent sell-off has provided an opportunity to buy shares at a discount. TPR delivered exceptional Q3 FY 26 results, with broad-based outperformance across revenue, margins, and profitability metrics. The company reported revenue of $1.92B (+21% Y/Y), $136M above estimates, with pro forma growth of 25% excluding the divested Stuart Weitzman business. Non-GAAP EPS reached $1.66 (+62% Y/Y), $0.36 above estimates, due to strong operational execution and margin expansion. The Coach brand grew revenues 31% Y/Y to $1.70B, while Kate Spade revenue declined 10% to $220M, though it makes up a much smaller portion of total revenue. We raise our Hold view to Buy based on valuation.

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