Goldman Sachs has adjusted its price target for Tapestry (TPR, Financial), lowering it from $98 to $84 while maintaining a Buy rating on the stock. This adjustment reflects a broader reassessment of the U.S. apparel and softlines sector due to emerging macroeconomic challenges.
The investment firm has also scaled back its U.S. GDP growth forecast, predicting a reduction from 2.5% in 2024 to just 0.5% in 2025, based on quarter-to-quarter comparisons. Furthermore, the likelihood of a recession has been pegged at 45% by Goldman's economists, signaling significant caution.
Despite not fully pricing in a recession, Goldman Sachs notes that recent market fluctuations, increasing geopolitical tensions, and elevated tariff rates could negatively impact earnings. These factors are contributing to a more guarded outlook for the sector and the economy as a whole.
