Wells downgrades Capri Holdings to Equal Weight on more balanced risk/reward

As previously reported, Wells Fargo downgraded Capri Holdings (CPRI) to Equal Weight from Overweight with a price target of $27, up from $25. The firm argues that positive catalysts are now in the rearview and rate of change is more debated against a more balanced risk/reward. Discussing the sector, Wells notes that while it continues to see a winners/losers setup, bigger picture, the firm leans more positive on the space entering 2026 due to better-than-feared early holiday reads, benefits from tax reform, and optionality on tariff repeal/refund.