Opinions
The Panic-Proof Portfolio (Stockchase Research)
Tapestry Inc.
TPR-N
TOP PICK
Sep 02, 2021
$41.100
Stock price when the opinion was issued
household goods
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PAST TOP PICK
(A Top Pick Sep 16/19, Down 39%) He felt it was well-positioned to turn around. It owns Coach handbags which had far overexpanded, and a high-end shoe company. It just bought Kate Spade whose product line needed updating. These brands were expected to take off in China. He's bought more shares and sees more upside. Carries no debt.
household goods
COMMENT
Got an analyst upgrade today and the stock surged and lifted the entire retail clothing sector. He prefers tried-and-true Lululemon though.
household goods
TOP PICK
Stockchase Research Editor: Michael O'Reilly This international manufacturer of luxury items that includes the Coach and Kate Spade brands is reiterated as a TOP PICK. Recently reported earnings beat expectations by 17% and ROE is over 29%. They are using cash reserves to buy back shares and pay down debt. They trade at 15x earnings, compared to peers at 28x. They have re-instated the dividend at a good yield, while keeping the payout ratio under 10% of cash flow. We recommend trailing up the stop (from the $30.00 as previously recommended) to $38.50, looking to achieve $56 -- upside potential over 27%. Yield 2.30%. (Analysts’ price target is $55.93)
household goods
PAST TOP PICK
(A Top Pick Dec 08/21, Down 11.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TPR has triggered its stop at $38.50. To remain disciplined, we recommend covering the position at this time. When combined with the previous buy recommendation, this results in a combined net investment loss of 9%.
household goods
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Stockchase Research Editor: Michael O'Reilly TPR is an international manufacturer of luxury items that include the Coach and Kate Spade brands. They have built cash reserves back above $2 billion during the pandemic, while paying down debt. They trade at 16x earnings, compared to peers like RL at 49x. They have re-instated the dividend at a good yield, while keeping the payout ratio under 50% of cash flow. We would buy this with a stop loss at $30, looking to achieve $53.50 -- upside potential over 29%. Yield 2.45%. (Analysts’ price target is $53.13)