Tapestry Shares Dive Post-Guidance.
Tapestry Stock Drops After Strong Q4 Despite Analyst Confidence, Cautious Guidance Tempers Outlook.
Key Points
Tapestry posted a Q4 revenue of $1.88 billion, up 8.9% year over year, and earnings per share of $1.32, surpassing expectations with margin expansion.
Barclays reiterated an overweight rating and raised its price target to $185, signaling continued confidence in Tapestry’s trajectory.
UBS analyst Jay Sole lifted the target to $232 while maintaining a Buy rating, citing strong fundamentals, AI-driven growth in softlines, and upside to margins; he expects mid-single-digit sales growth and mid-teens EPS growth over five years and views the FY27 EPS outlook as achievable and potentially beatable.
Citi also maintained a Buy rating with a target of $170 for Tapestry.
Morgan Stanley and Wells Fargo both kept overweight ratings on Tapestry but lowered their price targets, reflecting cautious optimism despite recent volatility.
Tapestry shares dropped about 16.5% in a single session despite posting strong Q4 results, with revenue of $1.88 billion — up 8.9% year over year — and earnings per share of $1.32, both beating expectations. The sell-off came after the company issued cautious guidance for fiscal year 2027, spooking investors even as Wall Street analysts largely held firm on bullish ratings. Benzinga and Investing.com both covered the flurry of analyst activity that followed the earnings release.
Despite the sharp stock decline, most major banks kept overweight or buy ratings on Tapestry. Price targets ranged from $159 to $232, reflecting a wide spread in how bullish each firm remains on the luxury accessories maker.
Strong Q4 Numbers Could Not Stop the Selloff
Tapestry's Q4 revenue of $1.88 billion grew nearly 9% compared to a year ago. Earnings per share of $1.32 also came in above what analysts had forecast, and margins expanded as well. By most measures, the quarter was a win.
But Tapestry's FY2027 guidance was more cautious than the market wanted. Investors sold the stock hard, pushing it down about 16.5% on the day. That gap — strong now, careful later — drove a split reaction across Wall Street banks.
Morgan Stanley and Wells Fargo Trim Targets but Stay Bullish
Morgan Stanley kept its Overweight rating on Tapestry but cut its price target to $159, according to Benzinga. Wells Fargo made a similar move, holding its Overweight rating while lowering its target to $160. Both banks stayed positive on the stock but pulled back on how high they think it can go near term.
The paired cuts suggest both firms see the cautious FY2027 guidance as a real headwind. Still, neither bank downgraded the stock. That signals they believe the selloff may have gone too far and that the long-term story remains intact.
Barclays Raises Target as UBS Touts AI-Driven Upside
Barclays went the other direction. The bank raised its price target on Tapestry to $185 while holding its Overweight rating, per Benzinga. That move stands out given the stock's big drop and the cautious tone around next year's earnings.
UBS analyst Jay Sole was the most bullish. He raised his price target from $230 to $232 and kept a Buy rating. According to TipRanks, Sole cited strong fundamentals and what he called underappreciated AI-driven growth. He expects mid-single-digit sales growth and mid-teens earnings per share growth over five years. Investing.com noted that UBS sees the post-earnings drop as a buying opportunity in a growth company, calling the FY2027 outlook achievable — and potentially beatable.
Citi Holds Buy as Analysts See Long-Term Value in Tapestry
Citi also kept a Buy rating on Tapestry with a price target of $170. That puts Citi in line with the broader analyst consensus: the stock fell hard, but the fundamentals still point higher over time.
With targets ranging from $159 at Morgan Stanley to $232 at UBS, the spread shows real disagreement about how fast Tapestry can grow. But the common thread across all five banks is that none downgraded the stock. The cautious FY2027 guidance rattled traders. Analysts, for the most part, are not walking away.
Sentiment
Mostly PositivePublishers
13
Articles
19
Reach
32
