Capri Holdings: Deleveraging Progress and Kors Stabilization Support Buy Rating and $31 Target

Capri Holdings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Paul Lejuez from Citi maintained a Buy rating on the stock and has a $31.00 price target.

Paul Lejuez has given his Buy rating due to a combination of factors that support a constructive outlook on Capri Holdings. He believes that, despite past missteps, the Michael Kors brand still has meaningful earning power and the ability to generate solid free cash flow, even without a dramatic turnaround. The recent sale of Versace has materially reduced leverage on the company’s balance sheet, improving financial flexibility and lowering risk. Additionally, he notes that recent quarters, while soft in absolute terms, show gradual improvement for Kors and ongoing consumer interest in the brand.

Lejuez also expects the upcoming quarterly results to generally align with management’s guidance and market expectations, with revenue and margins tracking slightly better than consensus forecasts. He anticipates management will tighten its full‑year earnings guidance range, which would reinforce visibility into near‑term performance. Third‑party indicators such as web traffic data and Citi credit card spending trends suggest improving momentum in key categories for Capri. Taken together, these operational and financial dynamics underpin his Buy rating and $31 target price, as he sees a favorable risk‑reward profile from current levels.