By Christiana Sciaudone
Investing.com -- Tapestry (NYSE:TPR) jumped 9% on Wednesday after getting a boost from Deutsche Bank (DE:DBKGn).
Analyst Paul Trussell upgraded the owner of Coach and Kate Spade to buy from hold and upped his price target to $21 from $18, according to StreetInsider.
Increased efforts to refocus brands, reduce SKU count, increase average unit revenue and accelerate its omnichannel strategy to expand margins are among the reasons why Trussell bumped the stock higher.
"While TPR's valuation on a P/E basis has rebounded somewhat from the March lows, it has not seen the same level of recovery as its manufacturing and specialty/footwear peers," Trussell wrote. "Specialty and footwear retailers saw a 7.7x average multiple expansion during the same time frame, and apparel manufacturers gained 6.9x turns vs. TPR's more modest 2.6x. Lastly, we now see sufficient upside (25% from current levels) with revised EPS estimates as we incorporate a much faster than anticipated top-line recovery."
Shares are trading at their highest since March, just above $18. The stock has six buy ratings, six holds and no sells. Last month, the company reported better-than-expected earnings for the quarter.