Tapestry (NYSE:TPR) news for Wednesday concerning an analyst upgrade for the Coach and Kate Spade owner has TPR stock on its way up.
Deutsche Bank analyst Paul Trussell is behind the positive news for TPR stock today. In a recent note, he bumped the stock up from its previous hold rating to a new buy rating. The analyst believes the company is going to experience a better-than-expected recovery from the novel coronavirus.
To go along with the new buy rating, Trussell also raised his price target from $19 per share to $21 per share. That’s a roughly 10.5% increase. It’s also sitting 24.6% higher than the stock’s closing price of $16.85 per share on Tuesday.
Tapestry is among many other retailers on the long list of companies that were hurt by the coronavirus pandemic. However, Trussell believes it has fallen too far. It’s recent earnings saw it report a loss that was narrower than analysts were expecting.
Here’s what the Deutsche Bank analyst said in a note obtained by Barron’s.
“We have seen better than expected results across a number of retailers as pent-up demand, stimulus checks, demand for larger handbags/backpacks and casual footwear and clothing, and consumers’ use of the digital channel aided a sequential rebound.”
Tapestry’s most recent earnings report came out on Aug. 13. The company reported adjusted losses per share of 25 cents and revenue of $714.8 million. These were both better than Wall Street’s estimates of 57 cents per share and revenue of $663 million.
TPR stock was up 7.4% as of Wednesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.