Tapestry (TPR) is positioned to deliver earnings per share surprises, driven by its brand strength, product engine, marketing budget, and strong balance sheet, UBS Securities said in a Friday note.
UBS expressed optimism in the company's potential to beat its fiscal 2027 EPS outlook of $7.80 to $7.90, citing strong underlying trends in fiscal Q4 and further upside to its gross margin guidance. The brokerage noted the continued growth of Tapestry's Coach brand, which is expected to outperform in fiscal 2027.
In addition, UBS said it expects Tapestry's artificial intelligence capabilities to drive insights for improved business decisions, and eventually unlock further growth for the company.
UBS raised its price target on Tapestry to $232 from $230, with a buy rating.
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