Barclays Upgrades Tapestry Inc. (TPR) to Overweight

Barclays analyst Adrienne Yih upgraded Tapestry Inc. (NYSE: TPR) from Equalweight to Overweight with a price target of $87.00 (from $57.00).

The analyst comments: "In our view, TPR is in the 'sweet spot' in the global handbag sector, as the brand is positioned to take share at both the lower-to-moderate end (trade up) and premium/luxury end (trade down) of the price spectrum. At the more moderate end, TPR is outperforming its legacy competitive set by delivering on innovation, quality, and brand resonance. At the same time, we see an improving value spread for TPR versus higher-end luxury handbag brands, as many of the European luxury players have taken outsized pricing increases since pre-pandemic. We believe that the pinnacle luxury segment's significant price increases since pre-pandemic have priced many younger consumers out of the market. Coach's brand quality, innovation, and pricing leaves it in the sweet spot to attract and retain those customers, while also leaving potential for price increases over time as brand loyalty grows and strengthens."

For an analyst ratings summary and ratings history on Tapestry Inc. click here. For more ratings news on Tapestry Inc. click here.

Shares of Tapestry Inc. closed at $67.36 yesterday.

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