Citigroup Upgrades Capri Holdings (NYSE:CPRI) to Buy

On January 13, 2025, Citigroup announced an upgrade for Capri Holdings (NYSE:CPRI) from a neutral rating to a buy rating. The firm's report indicated a new price target of $29.00 for the stock, which is an increase from the previous target of $21.00.

In addition to Citigroup's favorable outlook, several other financial analysts have recently provided their assessments of Capri Holdings. On January 6, BMO Capital Markets upgraded the stock from a “market perform” rating to an “outperform” rating, raising their price target from $25.00 to $31.00.

Conversely, Robert W. Baird adjusted their price target downward from $24.00 to $23.00 while maintaining a “neutral” rating on the stock as of November 8. Telsey Advisory Group also lowered their price target from $26.00 to $23.00, giving Capri a “market perform” rating on November 15. Meanwhile, Wells Fargo & Company upgraded the stock from an “equal weight” rating to an “overweight” rating, increasing their price objective from $20.00 to $28.00 in a report released on Friday.

TD Cowen, on the other hand, decreased their target price on Capri from a significant $57.00 to $22.00, labeling the stock as a “hold” in their report also from November 15. In summary, among analysts, one has given the stock a sell rating, seven favor a hold rating, and four have issued buy ratings. MarketBeat reports a consensus rating of “Hold” for Capri Holdings with an average price target of $27.55.

Capri's Stock Performance

As of Friday, Capri shares opened at $23.72. The company's stock has experienced considerable volatility, with a 52-week low of $18.70 and a high of $51.23. Currently, Capri’s 50-day simple moving average is at $21.42, while the 200-day simple moving average stands at $30.55. Capri Holdings has a market capitalization of $2.80 billion, a price-to-earnings (PE) ratio of -7.75, a price-to-earnings-growth (PEG) ratio of 4.55, and a beta of 2.06. Financial metrics also reveal that the company has a debt-to-equity ratio of 0.83, a quick ratio of 0.38, and a current ratio of 0.93.

Institutional Investment Trends

Recent investment activities show that various institutional investors have modified their holdings in Capri. Notably, Sunbelt Securities Inc. acquired a new stake worth about $42,000 during the third quarter. Quarry LP also entered a new position in the same quarter estimated at $53,000.

KBC Group NV has ramped up its holdings in Capri by 26.9% during the third quarter, now holding 3,074 shares valued at approximately $130,000 after obtaining an additional 652 shares. CWM LLC has shown a similar increase, raising its stock ownership by 26.9%, now owning 3,112 shares valued at $132,000. Lastly, Avior Wealth Management LLC increased their holdings by 15.2% during this period and now holds approximately 4,033 shares worth about $171,000. Collectively, 84.34% of Capri Holdings stock is held by hedge funds and other institutional investors.

Overview of Capri Holdings

Capri Holdings Limited specializes in designing, marketing, distributing, and retailing branded apparel, footwear, and accessories for both men and women across various regions, including the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. The company's operations are divided into three primary segments: Versace, Jimmy Choo, and Michael Kors. Capri Holdings offers a wide range of products such as ready-to-wear clothing, handbags, footwear, eyewear, and fragrances, distributed through various channels including boutiques, department stores, specialty shops, and online platforms.

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