Jefferies sees a 40% increase

Tapestry Inc (NYSE: TPR) is up 5.0% on Wednesday after a Jefferies analyst said the stock is a “major opportunity” for investors interested in playing in the retail space.

Tapestry Inc could be a $45 stock

Ashley Helgans upgraded TPR to “buy” this morning with a price target of $45 per share, which is up 40% from here. Previously, she had a $30 PT on the stock. The analyst wrote:

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We are moving to a more constructive view of improving margins and prospects for sales growth thanks to the fundamental changes made to the business in recent years, namely digital, marketing and data.

Last month, Tapestry Inc reported fiscal third-quarter results that beat Wall Street expectations. Shares of the NYSE-listed retailer are currently down nearly 20% from the start of 2022.

The tapestry can hold its own in a recession

The Jefferies analyst also expects the luxury fashion holding company to benefit (both in the short and long term) as China emerges from lockdown. She is convinced that Tapestry can also weather a recession.

Past performance during a recession gives us confidence in the company’s ability to manage the current turbulent macroeconomic landscape. Luxury goods tend to hold up better in times of recession. The upside opportunity is compelling at

The bullish note comes in the face of an unexpected 0.3% drop in retail sales announced Wednesday by the US Department of Commerce for the month of May.

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