Capri Holdings (CPRI) PT Raised to $60 at Wells Fargo Following EPS Beat

February 3, 2021 1:16 PM EST
Get Alerts CPRI Hot Sheet
Price: $53.90 +0.69%

Rating Summary:
    10 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 18 | New: 47
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Wells Fargo analyst Ike Boruchow raised the price target on Capri Holdings (NYSE: CPRI) to $60.00 (from $50.00) while maintaining an Overweight rating following strong results.

The analyst commented, "Valuation remains relatively inexpensive and CPRI remains a top recovery name in our space. All 3 brands are benefiting from a material change in inventory/SKU management while the MK brand is finally targeting lower levels of revenue and focusing more on profitability (confidence building towards the high-end of management’s 20-25% target). CPRI’s luxury brands (Versace and Choo) are set to become a much larger piece of the investment conversation going forward, increasing from just ~2% of EBITDA today, to ~25% in FY23 and ~40% LT. This should carry material implications on CPRI’s multiple from here (while numbers are also heading in the right direction). Raising PT from $50 to $60 (~9.5x EBITDA CY22 estimates) Adjusting our FY21/FY22/FY23 estimates from $0.72/$3.58/$3.96 to $1.49/$3.52/$4.00. Remain OW."



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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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Wells Fargo, Ike Boruchow