Tapestry Inc. (TPR) PT Raised to $41 at Needham & Company

Needham & Company analyst Rick Patel raised the price target on Tapestry Inc. (NYSE: TPR) to $41.00 (from $37.00) while maintaining a Buy rating.

The analyst commented, "TPR reported a F2Q21 (CY 4Q20) EPS beat, driven by better sales and margins than expected. Impressively, op. income and EPS were higher y/y despite the ongoing pandemic which resulted in lower overall sales. We attribute this to strong planning and execution, which led to strong digital performance (digital sales +triple-digit%, with 50% penetration in N. America), an acceleration in Mainland China, significantly higher GM% on less discounting and higher AUR, and expense control. This progress, coupled with a better F2H, should drive EPS higher in FY21 than it was before the pandemic.We see sales drivers across each of TPR’s three brands, and ongoing outperformance of digital should be margin accretive. Net, TPR is already performing well and poised to accelerate. We maintain our Buy rating and raise our PT to $41 from $37 on higher ests."

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