Last Updated: 19 Sep 2024
Executive Summary
Capri Holdings Ltd. (CPRI) is a global luxury fashion company with a diverse portfolio of brands including Michael Kors, Versace, and Jimmy Choo. The company has a strong financial position with a market capitalization of $4.6 billion and an EBITDA of $492 million. However, the company's earnings have been impacted by the COVID-19 pandemic, and its stock price has declined significantly over the past year. Despite these challenges, analysts remain bullish on Capri Holdings, with a consensus price target of $44.4.
Company Overview
Capri Holdings was founded in 1981 and is headquartered in London, UK. The company designs, markets, and distributes a wide range of luxury goods, including clothing, footwear, handbags, and accessories. Capri Holdings has a global presence with over 1,000 stores in over 100 countries.
Fundamental Analysis
Capri Holdings' financial performance has been mixed in recent years. The company's revenue has grown steadily, but its earnings have been volatile. In fiscal 2023, the company reported a loss per share of $2.48. This was due in part to the COVID-19 pandemic, which disrupted the company's supply chain and led to store closures.
Despite the challenges of the pandemic, Capri Holdings has a number of strengths. The company has a strong brand portfolio, a loyal customer base, and a global presence. The company is also well-positioned to benefit from the growing demand for luxury goods in emerging markets.
Technical Analysis
Capri Holdings' stock price has been in a downtrend since the beginning of 2023. The stock is currently trading below its 50-day and 200-day moving averages. This indicates that the stock is in a bearish trend. However, there are some signs that the stock may be oversold. The relative strength index (RSI) is below 30, which indicates that the stock is in oversold territory. This could lead to a short-term bounce in the stock price.
Short Term Outlook
In the short term, Capri Holdings' stock price is likely to remain volatile. The stock could continue to trade in a range between $35 and $40. However, if the stock breaks above $40, it could signal a reversal of the downtrend.
Long Term Outlook
In the long term, Capri Holdings' stock price is likely to be driven by the company's financial performance. If the company can continue to grow its revenue and improve its profitability, the stock price could rise significantly. However, if the company's financial performance continues to be weak, the stock price could continue to decline.
Analyst Recommendations
Analysts are generally bullish on Capri Holdings. The consensus price target for the stock is $44.4, which represents a potential upside of over 14%. One analyst has a strong buy rating on the stock, two analysts have buy ratings, and 12 analysts have hold ratings.
