Capri Holdings (CPRI) Is Up 8.1% After Analyst Upgrade Amid Versace Sale Plans Has Investor Sentiment Shifted?

• Earlier this week, Raymond James upgraded Capri Holdings from 'Market Perform' to 'Outperform,' joining a wave of recent analyst rating adjustments focused on the company.
• This surge in analyst interest coincides with Capri Holdings' ongoing plans to sell its Versace brand, marking a significant shift in the group's business portfolio.
• We'll explore how this analyst upgrade signals shifting confidence in Capri Holdings' turnaround efforts and potential changes in investor expectations.

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Capri Holdings Investment Narrative Recap

If you’re considering Capri Holdings as a candidate for your portfolio, you need to believe in a credible turnaround in brand relevance and revenue momentum, despite recent declines across Michael Kors and Jimmy Choo and the additional variable of the Versace sale. The Raymond James upgrade might spark short-term optimism, yet continued weakness in the core business and exposure to tariff risks still weigh on the central narrative; for now, the ratings change does not fundamentally alter the main catalysts or risks facing Capri Holdings.

Among recent developments, Capri Holdings’ formal progress toward selling its Versace brand to Prada stands out as most relevant. This deal could reshape the company’s portfolio and liquidity profile, but how proceeds are redeployed remains to be seen, especially with ongoing pressures on core brand performance and margin recovery.

But with lingering uncertainty around Michael Kors’ revenues and any sign of further decline, investors should be aware that...

Read the full narrative on Capri Holdings (it's free!)

Capri Holdings' narrative projects $3.7 billion in revenue and $351.8 million in earnings by 2028. This requires a 5.7% annual revenue decline and a $1.45 billion increase in earnings from current earnings of -$1.1 billion.

Uncover how Capri Holdings' forecasts yield a $25.25 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$2 to US$37.64 per share. Persistent softness across core brands highlights how cautious or optimistic investors can be about Capri’s turnaround and future earnings, so consider diverse outlooks as you weigh your next steps.

Explore 4 other fair value estimates on Capri Holdings - why the stock might be worth less than half the current price!

Build Your Own Capri Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Capri Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Capri Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Capri Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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