BUZZ- BMO raises Tapestry PT on mangement's organic growth focus as Capri deal collapses

Reuters11-18 21:03

** Brokerage BMO raises Coach handbag maker Tapestry's

price target to $60 from $55

** TPR focused on growing business organically, sustaining Coach expansion and re-igniting Kate Spade growth, brokerage says, after a meeting with top management ** On Thursday, TPR and Michael Kors-owner Capri called off their $8.5 bln merger deal on legal uncertainty

** Management is encouraged by TPR's outperformance in China, despite challenges, and notes that certain consumer pockets are holding up even as high-end European luxury houses face slowdown ** Says TPR is leveraging AI and data analytics to translate feedback by associates to win Gen Z consumers and drive comparable sales and store growth

** Earlier this month, TPR raised FY25 annual revenue and earnings forecasts after Q1 beat estimates on full-price sales of its popular Tabby handbags

** 12 of 20 brokerages rate the stock "buy" or higher and eight "hold"; with a median PT of $64

** Up to Friday's close, TPR stock has risen 55%, while CPRI has fallen ~58% YTD

(Reporting by Neil J Kanatt in Bengaluru) ((mailto:Neil.JKanatt@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment