Capri Holdings (CPRI) PT Lowered to $40 at Credit Suisse

Credit Suisse analyst Michael Binetti lowered the price target on Capri Holdings (NYSE: CPRI) to $40.00 (from $52.00) while maintaining a Neutral rating following the company's 4Q earnings report. F4Q EPS beat ($0.62 vs. Street $0.61) as a lower tax rate (11% vs 20% guide) offset a GM miss (-100bp vs Street -10bp).

CPRI’s guide for ~flat EPS growth in FY20 implies 4Q EPS could be up as much as 70% YOY. In 4Q, CPRI should see significantly better margins at Choo and Versace. But, Binetti thinks guide still relies on improving Kors brand trends.

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