TD Cowen analyst Oliver Chen maintained a Hold rating on Capri Holdings yesterday and set a price target of $24.00.
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Oliver Chen has given his Hold rating due to a combination of factors that suggest a cautious yet optimistic outlook for Capri Holdings. The company has shown some positive signs, such as beating earnings expectations in the first quarter and raising its revenue guidance. However, challenges remain, including the need for more customer relevance and the impact of tariff pressures, which have offset some revenue gains.
Despite plans to renovate a significant portion of its store fleet and reduce debt, Capri Holdings faces a cautious wholesale environment and the need to improve its marketing strategies. The company is working on enhancing its product offerings and reducing discounting to focus on full-price sales. While there is potential for growth, particularly with the planned renovations and marketing initiatives, the current environment and execution risks warrant a Hold rating as the company navigates these challenges.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Ermenegildo Zegna, and Capri Holdings. According to TipRanks, Chen has an average return of 6.1% and a 52.01% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $24.00 price target.