The Ultimate Investment Guide: Tapestry Inc. (NYSE: TPR) Analysis and Future Outlook
Evercore ISI maintains its Outperform rating on Tapestry Inc. with a price target of $47.00, based on solid financial metrics and potential for earnings growth. Tapestry's stock is valued at a P/E ratio of 8.5x fiscal year 2025 guidance, with EPS expected between $4.45 and $4.50. Key highlights include robust gross margins exceeding 70% for its core brand Coach and a 12% free cash flow yield.
The potential acquisition of Capri Holdings is a key factor influencing Tapestry's stock, with uncertainties surrounding the deal's completion and terms. Despite challenges, Evercore ISI remains optimistic about the long-term prospects of a combined Tapestry and Capri entity, suggesting a potential doubling of EPS within three to four years.
Investors are closely monitoring developments between Tapestry and Capri Holdings, as the outcome could significantly impact Tapestry's stock performance. Tapestry reported fourth-quarter results surpassing expectations, driven by strong demand for Coach Tabby handbags. In contrast, Capri reported a revenue decline, but Tapestry remains positive about the acquisition.
Looking ahead to fiscal 2025, Tapestry forecasts revenue of $6.7 billion and EPS of $4.45 to $4.50. Despite challenges in the luxury sector, Tapestry's strategy of focusing on coveted items like Tabby handbags has allowed it to outperform expectations.
InvestingPro Insights:
- Tapestry's gross profit margins are strong at 73.29%, supporting Evercore ISI's positive sentiment.
- The company has raised its dividend for 3 consecutive years, with a 3.57% yield and 16.67% growth.
- Market fundamentals remain solid, with a $9.01 billion market cap and a P/E ratio of 10.85.
- Tapestry's liquid assets exceed short-term obligations, providing financial flexibility.
For more in-depth analysis and tips on Tapestry's stock performance, investors can access InvestingPro's platform for detailed insights. Stay informed and make informed investment decisions with our comprehensive analysis.
This article provides valuable insights into Tapestry Inc.'s current status, potential future growth, and investment opportunities. Stay ahead of the curve and make informed decisions to secure your financial future.