Morgan Stanley Downgrades Capri Holdings (CPRI) to Equalweight

Morgan Stanley analyst Alex Straton downgraded Capri Holdings (NYSE: CPRI) from Overweight to Equalweight with a price target of $40.00 (from $55.00).

The analyst comments "In our view, CPRI continues to represent: 1) a compelling brand portfolio (given luxury exposure); with 2) a history of powerful earnings growth (~23% y/y on average since FY16); & 3) a potentially enhanced profitability profile. Put differently, we’re constructive on this stock long-term. And, with it trading -43% since the Company first talked about the re-basing of its wholesale business on 3Q23(vs. our coverage -9% on average), CPRI’s valuation sits at 6x, one of the lowest in our coverage. For these reasons, we think a move to Underweight would prove punitive, & instead opt for an Equal-weight rating."

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 $36.52 yesterday.

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