Ike Boruchow, an analyst from Wells Fargo, maintained the Buy rating on Capri Holdings (CPRI – Research Report). The associated price target remains the same with $30.00.
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Ike Boruchow’s rating is based on Capri Holdings’ strategic plans to rejuvenate revenue streams and effectively manage margins across its brands. The company has outlined a multi-year plan, maintaining its FY25/26 goals while adjusting long-term revenue and margin targets through FY28. This adjustment reflects a realistic assessment of current performance challenges, particularly for the Michael Kors (MK) and Versace brands.
A significant aspect of the Buy rating is the anticipated inflection in FY27, where growth in revenue and operating margins is expected to surpass market expectations. The MK brand, in particular, is poised to drive this resurgence with substantial revenue growth projected in accessories, ready-to-wear, and footwear. While Versace faces near-term challenges, strategic focus on specific product categories and reduced discounting is expected to lead to improvement by FY27. Jimmy Choo, noted for its stability, is projected to grow steadily, further justifying the optimistic outlook for Capri Holdings.
According to TipRanks, Boruchow is a 3-star analyst with an average return of 0.6% and a 46.79% success rate. Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Capri Holdings, and Deckers Outdoor.