Citi Upgrades Capri Holdings (CPRI) to Buy

Citi analyst Paul Lejuez upgraded Capri Holdings (NYSE: CPRI) from Neutral to Buy with a price target of $29.00 (from $21.00).

The analyst comments "We are upgrading CPRI from Neutral to Buy. CPRI has had a tough couple of yrs but the market seems to be valuing the company as if its portfolio of brands are on a path to extinction. We do not believe they are, which creates a very favorable risk/reward if anything were to go right. We see two ways for the stock to work (though they are not mutually exclusive). First, with each of its brands having performed so poorly in recent qtrs (likely in part tied to mgmt taking their eye off the ball during the merger process), any signs of stabilization/improvement (as mgmt refocuses on the biz following the merger getting blocked) could move the stock higher. Second, the company could monetize one or more of its brands (they have already shown they are open to a sale), which may highlight the true mkt value of its assets."

For an analyst ratings summary and ratings history on Capri Holdings click here. For more ratings news on Capri Holdings click here.

Shares of Capri Holdings closed at $21.51 yesterday.

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