Tapestry, Inc.

(New York Stock Exchange)
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Slightly Bullish +25

Raymond James cuts target for Tapestry stock to USD 140.00

Analyst downgrade AI-generated analysis

📉 Raymond James lowered Tapestry's price target to USD 140.00 from USD 165.00 on October 16, 2026.

⭐ The analyst maintained an 'Outperform' rating despite the reduction in the valuation ceiling.

💰 Fiscal year 2026 revenue reached USD 8.0 billion, marking a 14 percent year-over-year increase.

📈 Operating margins expanded to 23.4 percent during the fiscal year ended in 2026.

🚀 Adjusted earnings per share grew significantly by 38 percent to reach USD 7.05.

🛍️ Growth was driven by Coach brand momentum and a reduction in promotional discounts.

🌍 International expansion and higher average unit retail prices supported the revenue surge.

📅 The company is scheduled to report next quarter's results on November 5, 2026.

🗳️ Tapestry will hold its annual meeting on November 11, 2026, with 11 director nominees.

🔮 Analysts project mid-single-digit revenue growth and margin expansion for fiscal year 2027.

Bullish Signals
  • Fiscal year 2026 revenue reached USD 8.0 billion, representing a strong 14 percent increase from the prior year.
  • Operating margins expanded to 23.4 percent, demonstrating improved profitability efficiency.
  • Adjusted earnings per share surged by 38 percent to USD 7.05, highlighting robust bottom-line growth.
  • The company successfully leveraged Coach momentum and reduced promotions to drive sales.
  • International growth and higher average unit retail prices provided key drivers for the fiscal year performance.
  • Raymond James maintains an 'Outperform' rating, signaling confidence in the company's strategic direction despite a lower price target.
Risk Factors
  • Raymond James cut its price target from USD 165.00 to USD 140.00, reflecting a more conservative valuation outlook.
  • The analyst noted that market debate has shifted from recovery concerns to sustainability of recent growth rates.
Full Analysis
Tapestry Inc. (TPR) recently faced a reduction in its price target by analyst firm Raymond James, which lowered the valuation estimate to USD 140.00 from USD 165.00 on October 16, 2026. Despite this downgrade, the analyst maintained an 'Outperform' rating, indicating that the core business fundamentals remain robust even if the current multiple is viewed as less attractive. The company reported strong fiscal year 2026 results with total revenue reaching USD 8.0 billion, representing a 14 percent increase from the prior year. Operating margins expanded to 23.4 percent, while adjusted earnings per share surged by 38 percent to USD 7.05, driven by Coach momentum and lower promotional spending. Raymond James cited specific drivers for the positive operating view, including higher average unit retail prices and international growth, projecting mid-single-digit revenue expansion for fiscal year 2027. The upcoming earnings report scheduled for November 5, 2026, will be a critical test to determine if Tapestry can sustain this margin trajectory. Beyond financial results, the company is preparing for its annual meeting on November 11, 2026, which will feature the election of 11 director nominees. The market is now focused on whether the recent growth can convert into continued profitability or if it signals a peak in the current cycle.