Capri (NYSE:CPRI) Stock Rated Hold in New Coverage at TD Cowen

Key Points

• TD Cowen initiated coverage of Capri with a “Hold” rating. The broader analyst consensus is also “Hold,” with a consensus price target of $21.80.
• Capri’s latest quarter exceeded expectations, reporting adjusted earnings of $0.42 per share versus estimates of $0.21 and revenue of $809 million versus $786.55 million.
• Despite improved profitability and strong Jimmy Choo growth, challenges remain: total revenue declined 5.5% year over year, Michael Kors revenue fell 8.6%, and the company carried $461 million in borrowings against $125 million in cash.

TD Cowen assumed coverage on shares of Capri (NYSE:CPRI - Get Free Report) in a research note issued to investors on Friday, Zacks reports. The brokerage set a "hold" rating on the stock.

Several other brokerages have also recently weighed in on CPRI. Barclays dropped their price target on shares of Capri from $20.00 to $19.00 and set an "overweight" rating on the stock in a research report on Thursday, August 6th. Raymond James Financial raised Capri from an "outperform" rating to a "strong-buy" rating and set a $20.00 price objective for the company in a research note on Friday, October 16th. Wall Street Zen upgraded Capri from a "hold" rating to a "buy" rating in a report on Saturday, September 5th. Telsey Advisory Group cut their target price on Capri from $21.00 to $18.00 and set a "market perform" rating on the stock in a research report on Thursday, August 6th. Finally, UBS Group cut their target price on Capri from $20.00 to $17.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Capri presently has an average rating of "Hold" and a consensus price target of $21.80.

Capri Stock Performance

NYSE CPRI opened at $18.52 on Friday. The company has a market cap of $2.11 billion, a P/E ratio of 14.25, a PEG ratio of 0.34 and a beta of 1.35. The company has a fifty day simple moving average of $14.62 and a 200 day simple moving average of $17.91. The company has a current ratio of 1.19, a quick ratio of 0.54 and a debt-to-equity ratio of 2.27. Capri has a 12-month low of $12.40 and a 12-month high of $28.26.

Capri (NYSE:CPRI - Get Free Report) last released its quarterly earnings data on Friday, October 30th. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.21. Capri had a net margin of 4.44% and a return on equity of 297.36%. The firm had revenue of $809.00 million for the quarter, compared to the consensus estimate of $786.55 million. During the same quarter in the prior year, the company posted ($0.03) earnings per share. The business's revenue was down 5.5% on a year-over-year basis. Sell-side analysts predict that Capri will post 2.11 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Capri

A number of institutional investors have recently added to or reduced their stakes in CPRI. Segall Bryant & Hamill LLC increased its position in shares of Capri by 92.6% during the 1st quarter. Segall Bryant & Hamill LLC now owns 2,734,735 shares of the company's stock valued at $48,186,000 after purchasing an additional 1,314,611 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Capri by 34.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,165,618 shares of the company's stock worth $38,154,000 after purchasing an additional 557,955 shares during the period. Cooper Creek Partners Management LLC purchased a new position in shares of Capri in the 1st quarter worth about $23,784,000. Allspring Global Investments Holdings LLC boosted its holdings in shares of Capri by 15.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 640,980 shares of the company's stock worth $11,518,000 after buying an additional 86,361 shares during the last quarter. Finally, SummitTX Capital L.P. grew its position in Capri by 222.3% during the first quarter. SummitTX Capital L.P. now owns 569,054 shares of the company's stock valued at $10,027,000 after buying an additional 392,517 shares during the period. 84.34% of the stock is owned by institutional investors.

Key Stories Impacting Capri

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri reported quarterly adjusted earnings of $0.42 per share, well above the $0.21 analyst consensus and sharply ahead of the $0.03 loss recorded a year earlier. Revenue of $809 million also exceeded estimates of $786.55 million. Capri Holdings Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved substantially: net income reached $27 million versus a $34 million loss in the prior-year quarter, while gross margin expanded to 63.3% from 61.0%. Operating income also returned to positive territory. Capri Reports Revenue and Quarterly Net Income
• Positive Sentiment: Management raised its fiscal 2027 outlook, expecting approximately $3.42 billion in adjusted revenue. Capri also repurchased about 10.3 million shares for $150 million, supporting per-share results and signaling confidence in the recovery. Capri Holdings Fiscal 2027 Second-Quarter Earnings Presentation
• Positive Sentiment: Jimmy Choo was a notable bright spot, with revenue increasing 11.5% to $146 million, partially offsetting weakness elsewhere in the portfolio.
• Negative Sentiment: Total revenue still declined 5.5% year over year, and Michael Kors revenue fell 8.6% to $663 million, highlighting ongoing brand and demand challenges. Capri also ended the quarter with $461 million of borrowings and $125 million in cash. Capri Holdings Key Second-Quarter Metrics

Capri Company Profile

Capri Holdings Limited NYSE: CPRI is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands.

Capri's principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances.

The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.