Piper Jaffray analyst Erinn Murphy reiterated an Overweight rating with a $40 price target.
Murphy said Tapestry management is confident in the multi-brand strategy and reiterated their view to achieve double-digit EBIT growth in fiscal year 2020. The Kate Spade transition is underway and by the end of June, over 90 percent of full-price products will be from new creative director Nicola Glass.
“While management acknowledged the overall North America retail climate has been ‘choppier’ year-to-date, trends overseas are particularly strong and they are not seeing pressure in their China business,” Murphy wrote in the note.
China is still the largest opportunity across the company’s portfolio from a regional perspective and management indicated they haven’t seen anti-American sentiment arise or pressure their businesses.
Lets go to the charts to find out why I think Erinn is so wrong.
Price broke the monthly up trendline that was established back in 2015.
Price also broke a major weekly resistance/support line at $44.
Thus, the chart suggests price goes to the weekly demand at $18, before going to $40.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.