UBS has raised its price objective on Tapestry Inc. (NYSE: TPR) to $141.00 from $125.00, while keeping a Neutral recommendation on the stock. The move comes as Tapestry shares trade close to their 52-week high of $153.13, after the stock delivered a 92.28% total return over the past year.
In its update, UBS highlighted the successful repositioning of the Coach label and tighter cost controls as central to the firm’s decision to lift the target. The bank said those developments have generated measurable gains in brand momentum for Coach, a point it tied to Tapestry’s elevated 75.98% gross profit margin and its projection for 11% revenue growth in fiscal year 2026.
UBS expects Coach sales to increase by 20% year-over-year in fiscal 2026, reflecting what it describes as a stronger standing in the luxury accessories market. Despite that upbeat sales forecast, UBS emphasized that this scenario is largely consistent with prevailing market expectations and therefore may not produce significant additional upside for the shares.
The analysts identified two constraints on further appreciation beyond the stock’s current forward multiple. First, UBS believes the market already anticipates that Coach’s sales growth in North America and Greater China will reach peak levels in fiscal 2026 - a dynamic that could recast Coach as a decelerating growth story thereafter. Second, UBS noted investor feedback suggesting a rotation toward European luxury names, which tend to trade at lower price-to-earnings ratios, as some market participants view luxury sales trends in that region as becoming "less bad."
Valuation metrics flagged by InvestingPro were also cited in the report. According to that data, Tapestry appears overvalued on Fair Value calculations. InvestingPro shows a current price-to-earnings ratio for TPR at 62.46, a level the analysts described as materially above historical norms, and a relative strength index that places the shares in overbought territory.
UBS pointed out that much of the bullish case is reflected in the market price already. The firm noted this as a reason to maintain Neutral despite upgrading the target price.
In related corporate results, Tapestry reported robust second-quarter results for fiscal 2026 that exceeded consensus forecasts. The company posted adjusted earnings per share of $2.69, ahead of the $2.19 estimate by 22.83%, and reported quarterly revenue of $2.5 billion versus the $2.29 billion that analysts had expected - a 9.17% surprise. The company’s Coach brand drove notable strength, with 25% growth that surpassed guidance for low double-digit expansion.
Following those results, Wells Fargo raised its price target on Tapestry to $165 from $142 and continued to carry an Overweight rating, reflecting the outsized contribution from Coach.
Taken together, UBS’s revised target and the recent company results underscore Tapestry’s improved operating performance and brand traction at Coach, while also highlighting valuation and market-expectation risks that investors must weigh when assessing the stock.