10 Stocks That Analysts Think Will Go Up

5. Tapestry, Inc. (NYSE:TPR) 

Tapestry, Inc. (NYSE:TPR) is a branded lifestyle products and luxury accessories provider. It operates through Stuart Weitzman, Coach, and Kate Spade segments. The company provides women’s accessories, women’s handbags, belts, charms, and key rings. It also offers men’s products including bag collections, small leather goods, eyewear and sunglasses, and footwear & fragrances.

The holiday season saw the company’s Coach brand register impressive growth, helping the company improve its standing in the premium accessories business. Analysts at Redburn Atlantic believe the company is going under the radar and has the potential for outperformance:

We believe consensus is underestimating the incremental growth and margin expansion prospects for the core Coach brand, given its already lofty margins (30%+) and seemingly mature position in the key markets of the US and China.

The company spent much of 2024 dealing with regulatory issues related to the merger with Capri (CPRI). The merger plans were abandoned late last year when both parties mutually agreed that the required regulatory approvals would not be received in time. By shifting the focus back to the business for the holiday season, the company has managed to accelerate its growth.

The analysts echoed the same sentiments, expecting the company to grow its earnings at 14.5% CAGR till FY28 as opposed to the 5% growth modeled with the merger.