TD Cowen sees a bright future ahead for fashion giant Tapestry . The investment bank upgraded Tapestry — the parent of Coach and Kate Spade New York — to a buy rating from hold. Analyst Oliver Chen also lifted his price target 11%, to $100 from $90. Shares of Tapestry have surged 25% this year while the S & P 500 has risen just 2%. Chen’s updated target implies an additional 22% upside from Tapestry’s Wednesday close of $81.75. TPR YTD mountain TPR shares YTD As a catalyst, Chen cited continued brand momentum at Coach, which he estimates could grow about 5% in fiscal year 2026. “We believe Coach can see sustained growth and gain market share through the platform strategy and expanding [product lineup] families, as well as lifestyle product assortment expansion. Additionally, brand awareness remains low with long-term growth opportunity in China and Europe through store growth and marketing investment,” he wrote. “Overall, Coach brand heat has allowed the business to drive higher full-price selling, resulting in record gross margins of ~78% with greater opportunity to reinvest in product development.” Chen sees specific tailwinds for Coach coming from a focus on its families of handbags and the compounding effects of “Gen Z customer acquisition” as popularity grows. The next big opportunity for Tapestry lies in the footwear market, which could potentially reach $1 billion in revenue, Chen said. “Footwear is the next logical extension to injecting more lifestyle and adjacent purchases from core customers. The company has also recently launched shoes with uniform pricing across outlet and full-price stores,” he wrote.
TD Cowen upgrades a fashion house, citing ‘brand heat’ from Gen Z
