Noted JPMorgan analyst sees shares of Coach retailer jumping more than 30%

JPMorgan reiterated an overweight rating on Tapestry (TPR) with a $104 price target, citing Coach's multi-year growth potential as a key driver. Analyst Matthew Boss highlighted that Coach's efforts to attract younger customers have reached a critical scale, offsetting declines from price-sensitive customers and driving revenue growth. The newly acquired Gen-Z and Millennial customers exhibit higher average unit retails, purchase frequency, and retention rates, influencing older generations and reactivating lapsed customers.

Analysis

JPMorgan has reiterated an overweight rating for Tapestry, Inc. (TPR) with a $104 per share price target, implying a significant 32% upside from its recent closing price of $78.91. This optimistic outlook is primarily anchored by the perceived multi-year growth trajectory of Tapestry's Coach brand, as highlighted by analyst Matthew Boss. A critical factor underpinning this forecast is Coach's successful strategy targeting younger demographics, specifically Gen-Z and Millennials, which has reportedly "reached critical scale." These newly acquired customer cohorts are demonstrating superior engagement metrics, including transacting at higher average unit retails, exhibiting increased purchase frequency, and showing improved retention rates compared to both prior year figures and previous customer segments. Furthermore, this youth engagement is creating a positive spillover effect, influencing older generations and contributing to the re-activation of lapsed customers, thereby more than offsetting previous declines from more price-sensitive consumers. The stock's nearly 21% advance in 2025 already reflects some positive momentum, but JPMorgan's analysis suggests substantial further growth potential driven by these favorable customer dynamics within the Coach brand.

Key Decisions for Investors

• Investors may find Tapestry's stock compelling given JPMorgan's reiterated overweight rating and substantial price target upside, primarily driven by the Coach brand's successful pivot towards younger, higher-value customer segments.
• It would be prudent to monitor key performance indicators related to Coach's customer acquisition, retention, and average unit retail among Gen-Z and Millennial consumers, as these are crucial to validating the projected growth and the sustainability of the current positive trends.
• Despite the stock's notable year-to-date appreciation of nearly 21%, the analysis suggests further upside potential, warranting a review of current positions or consideration for new investment based on individual risk tolerance and investment horizons, keeping in mind the positive signals from customer cohort behavior.