Dana Telsey of Telsey Advisory Group has raised the price target for NYSE:CPRI to $20, indicating an 8.05% potential upside.
Despite a significant fourth-quarter adjusted loss, Capri Holdings’ sales exceeded expectations, reaching $1.035 billion.
The company is undergoing strategic changes, including the sale of Versace to Prada for $1.375 billion, aiming to reshape its future direction.
Capri Holdings Limited, trading as CPRI on the NYSE, is a renowned global fashion luxury group. The company, which owns iconic brands such as Michael Kors, Versace, and Jimmy Choo, has recently been the subject of a price target update by Dana Telsey from Telsey Advisory. Telsey has set a price target of $20 for CPRI, suggesting an 8.05% potential increase from its current trading price of $18.51.
Telsey Advisory Group’s Dana Telsey has maintained a Market Perform rating on CPRI, while raising the price target from $17 to $20. This adjustment follows Capri Holdings’ report of a fourth-quarter adjusted loss of $4.90 per share, significantly below the anticipated 14-cent loss. Despite this, the company’s quarterly sales reached $1.035 billion, surpassing the analyst consensus estimate of $986.57 million.
The company’s sales, although better than expected, still represented a 15.4% decline year over year. On a constant currency basis, total revenue decreased by 14.1%. This mixed result was marked by a smaller-than-expected decline in sales but a more substantial drop in gross margins, highlighting challenges in maintaining profitability.
Capri Holdings has been active in reshaping its strategy. Since the third quarter of FY25, the company announced long-term brand-specific targets during its Investor Day, the departure of longtime CFO/COO Tom Edwards, and the sale of Versace to Prada for $1.375 billion. These moves are seen as pivotal for the company’s future direction.
Currently, CPRI is trading at $18.51, with a 2.61% increase today, translating to a $0.47 rise. The stock has fluctuated between $18.07 and $19.03 during the trading day. Over the past year, CPRI has seen a high of $43.34 and a low of $11.86, with a market capitalization of approximately $2.18 billion and a trading volume of 3,777,786 shares.
