
CPRI Stock Forecast & Price Target
CPRI Analyst Ratings
Bulls say
Capri Holdings is poised for significant growth, with a forecasted incremental revenue opportunity of $900 million from its retail channel, and an anticipated rise in licensed products sales exceeding $2 billion. The company's strategic focus on gross margin expansion and operating leverage is underscored by cost reduction initiatives and a shift towards accessories, which are projected to increase their contribution from 22% to 30% of overall sales. Additionally, strong momentum in subscription services, evidenced by a 57% year-over-year growth in current subscription billings, indicates effective execution in leveraging digital transformation to enhance the brand's reach and profitability.
Bears say
Capri Holdings is experiencing a negative outlook due to the anticipated decline in the Americas region's contribution to brand sales, projected to decrease from 68% in FY25 to 60% in the long term, despite an eventual recovery in FY27 that may add $400 million in incremental revenue. The deterioration of the Michael Kors brand raises concerns about its ability to recover, compounded by risks including geopolitical pressures and ongoing soft demand for luxury goods, which could hinder the brand's turnaround efforts. Additionally, there is a significant equity value premium relative to intrinsic value, indicating potential overvaluation in Capri's stock price and contributing to the overall pessimism surrounding the company’s financial stability.
This aggregate rating is based on analysts' research of Capri Holdings Ltd and is not a guaranteed prediction by Public.com or investment advice.
CPRI Analyst Forecast & Price Prediction
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