UPDATE: Cowen Upgrades Capri Holdings (CPRI) to Outperform
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Cowen analyst Oliver Chen upgraded Capri Holdings (NYSE: CPRI) from Market Perform to Outperform with a price target of $75.00 (from $57.00).
The analyst comments "Current Valuation at ~11x FY2 P/E Is Attractive & Cowen's Sum-Of-Parts Indicates Strong Upside. Our $75 PT implies a ~13.6x FY2 P/E on our $5.50 estimate, which is attractive relative to current ~11x and 3-year max of ~16x. Cowen's Sum-of-Parts (SOTP) analysis at $75 implies an EV/EBITDA multiple of 8.5x at MK and ~7x at Versace with each incremental turn in Versace's multiple yielding +$2.00 share price. Our bull-case ascribes 9x at MK and 10x at Versace and yields an illustrative $85 PT. Furthermore, we estimate that Versace at $2bn revenue and 20% margins could yield ~$0.73 additional EPS or +13% accretion to our FY23 $5.50 EPS estimate "
Shares of Capri Holdings closed at $59.40 yesterday.
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