Capri Buy Maintained as Product Execution and Brand Refresh Offset Tariff Headwinds at Attractive Valuation

Oliver Chen, an analyst from TD Cowen, maintained the Buy rating on Capri Holdings. The associated price target was lowered to $26.00.

Oliver Chen has given his Buy rating due to a combination of factors including Capri’s solid third-quarter beat on both revenue and earnings, supported by improving full-price sell-through and stronger product execution—particularly at Jimmy Choo—as well as the strategic marketing refresh that is enhancing brand storytelling and average unit retail. While gross margin was constrained by higher tariffs tied to the mix of newer items, underlying margins would have expanded absent this temporary headwind, and operating margin already moved up to 7.7% versus 6% last year.
He also sees the recent share pullback to roughly 10.6x forward EPS as an attractive entry point, especially since the Michael Kors transformation plan (store rationalization, outlet remerchandising, and handbag pricing architecture) is gaining traction, and Capri raised its fiscal 2026 sales outlook. Chen acknowledges near-term risks—such as ongoing wholesale repositioning at Kors, daigou normalization, and lingering tariff costs—but believes execution on product, marketing, and margin initiatives lays the groundwork for upside as catalysts accumulate, justifying the Buy despite a trimmed $26 price target.

In another report released on January 29, BTIG also maintained a Buy rating on the stock with a $30.00 price target.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CPRI in relation to earlier this year.