Last Updated: 10 Nov 2024
Executive Summary
Tapestry Inc. (TPR) is a leading luxury fashion holding company with a market capitalization of $12.17 billion. Despite facing headwinds in the current economic climate, the company remains financially sound with strong profitability and growth potential. Its recent acquisition of Kate Spade New York has expanded its brand portfolio and diversified its revenue streams. Analysts are generally positive on the stock, with a consensus target price of $54.29 and a majority of buy ratings.
Company Overview
Tapestry Inc. is an American multinational luxury fashion holding company based in New York City. It owns and operates three major brands: Coach New York, Kate Spade New York, and Stuart Weitzman. The company designs, manufactures, and sells a range of luxury accessories, including handbags, wallets, shoes, and jewelry.
Fundamental Analysis
Revenue: Tapestry's revenue has grown steadily over the past few years, reaching $6.67 billion in the trailing twelve months (TTM). The company is expected to continue growing its revenue in the coming years, driven by the expansion of its brand portfolio and increased demand for luxury goods.
Profitability: Tapestry is a highly profitable company with an EBITDA margin of 14.4% and a net profit margin of 12.1%. The company's profitability is expected to remain strong in the coming years, supported by its strong brand portfolio and efficient operations.
Valuation: Tapestry is currently trading at a trailing price-to-earnings (P/E) ratio of 15.14 and a forward P/E ratio of 11.74. These valuations are in line with the industry average and suggest that the stock is fairly valued.
Technical Analysis
Trend: Tapestry's stock price has been trending sideways over the past few months, with a slight upward bias. The stock is currently trading above its 50-day and 200-day moving averages, which indicates a positive trend.
Support and Resistance: The stock has strong support at $45.28 (50-day moving average) and resistance at $52.5 (52-week high). A break above resistance could lead to further upside potential, while a break below support could trigger a downward trend.
Short Term Outlook
In the short term, Tapestry's stock price is expected to remain volatile due to the current economic uncertainty. However, the company's strong fundamentals and positive analyst sentiment suggest that the stock could perform well over the next few months.
Long Term Outlook
In the long term, Tapestry is expected to continue growing its revenue and profitability, driven by the expansion of its brand portfolio and increased demand for luxury goods. The company's strong balance sheet and experienced management team position it well for long-term success.
Analyst Recommendations
Analysts are generally positive on Tapestry Inc. stock. The consensus target price is $54.29, with 6 strong buy ratings, 8 buy ratings, 6 hold ratings, and 0 sell ratings.
