Breaking Down Capri Holdings: 6 Analysts Share Their Views

Capri Holdings CPRI has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $40.83, along with a high estimate of $43.00 and a low estimate of $38.00. Observing a downward trend, the current average is 16.96% lower than the prior average price target of $49.17.

Investigating Analyst Ratings: An Elaborate Study

The perception of Capri Holdings by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Capri Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Capri Holdings compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Capri Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Capri Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Capri Holdings analyst ratings.

Unveiling the Story Behind Capri Holdings

Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Michael Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 700 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.

Understanding the Numbers: Capri Holdings's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Capri Holdings's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -8.39%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -38.59%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Capri Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -26.72%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Capri Holdings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -6.6%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Capri Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.24, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.