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stock has surged 190% Prior to now 12 months and almost 40% in 2021 So far. Piper Sandler says the rally can maintain going As a Outcome of the accent maker turns into extra properly-appreciated amongst youthfuler, style-acutely conscious consumers.
Analyst Erinn Murphy reiterated an Obese rating on Tapestry stock (ticker: TPR) on Wednesday, whereas elevating her worth goal to $54 from $45. The transfer comes on the heels of her agency’s semiannual teen survey, which conagencyed that the Coach and Kate Spade proprietor is enhancing its mannequin picture with youthful consumers.
Tapestry closed 0.5% greater at $43.09 on Wednesday.
The survey coated some 7,000 consumers with A imply age of simply over 16 yrs. It found that youthful womales’s spending on clothes has rebounded shortly, up 9% yr over yr, properly forward of that by their male counterparts, which stays down by double digits.
For purses particularly—extra in Tapestry’s wheelhouse—spending improved 4% from the yr-in the past interval And seven% sequentially, a marked enchancmalest from a multiyr downward enchancmalest. “Tapestry was In all probability the most related portfolio equipmalest agency in our safety this spring, capturing 27% of complete vote Among The numerous most properly-appreciated purse,” Murphy writes. That’s The very biggest diploma for The agency As a Outcome of The autumn of 2017.
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Feminine teenagers’ growing participation in e-commerce is one other encouraging sign, As a Outcome of it now eclipses that of youthful males. Contemplating that Tapestry has been investing in its omnichannel platform and digital gross sales, teenagers’ on-line spending Might be one other tailwind for the stock, she writes.
These knowledge give Murphy confidence that Tapestry ought to commerce at A greater a quantity of than it does presently. Her new goal worth Is eighteen occasions her fiscal 2022 earnings per share estimate of $3 a share, up from 15 occasions.
Write to Teresa Rivas at [email protected]Corrections & amplifications:Murphy’s worth goal for Tapestry stock rose to $54 from $45. A earlier mannequin of This text incorrectly said The mannequin new And former worth goals.