CPRI Stock Forecast & Price Target

Capri Holdings is a global fashion luxury group with multiple high-end brands, including Michael Kors and Jimmy Choo. Despite recent challenges in the EMEA region and inventory delays, the company's turnaround strategy for Michael Kors is showing positive results, with continued strong sales in North America and China and successful store renovation programs. Furthermore, Capri Holdings has the potential for shareholder value creation through a focus on profitability recovery, potential corporate actions, and a strong financial position. With favorable long-term prospects and a potential for improved financial performance, Capri Holdings presents an attractive investment opportunity for growth-oriented investors.

Capri Holdings is facing challenges with its Michael Kors brand, including a decline in sales and excess inventory, which are expected to be temporary headwinds. Additionally, there is potential for upside if the company is able to continue its recovery and clear inventory faster than expected. However, there are risks such as overall sales declining and potential difficulties in the EMEA region due to lower tourist traffic. Based on these factors, the current outlook for the company remains negative, with a price target of $25 based on 10x FY28 EPS estimate.