Capri Holdings (CPRI) Valuation Check After Wells Fargo Downgrade and Rising Insider Selling
Capri Holdings (CPRI) just got knocked down a peg by Wells Fargo, which now sees a more balanced risk and reward as near term catalysts thin out, even as insider selling picks up.
See our latest analysis for Capri Holdings.
Even with the downgrade and news that Capri will sell Versace to Prada, the stock’s momentum has been quietly improving. The 90 day share price return of 25.94 percent and the 1 year total shareholder return of 19.67 percent contrast sharply with the deeply negative 3 year total shareholder return.
If this shift in sentiment has you rethinking your watchlist, it could be a good time to explore fast growing stocks with high insider ownership for other compelling ideas beyond Capri.
With shares still trading at a steep discount to intrinsic value while hovering just below Wall Street targets, the real question now is whether Capri is a mispriced turnaround or if the market already sees through to future growth.
Most Popular Narrative Narrative: 4.9% Undervalued
Capri Holdings last closed at $25.25 compared to a most popular narrative fair value of $26.54, hinting at modest upside if the turnaround holds.
Supply chain optimization, targeted cost efficiencies, and strategic pricing initiatives are expected to offset tariff headwinds by fiscal 2027, supporting sustainable gross margin expansion and operating earnings growth.
Curious how shrinking revenues can still support a higher valuation? This narrative leans on a profit makeover, richer margins, and a surprisingly restrained future earnings multiple. Read the complete narrative.
Result: Fair Value of $26.54 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, prolonged revenue stagnation and lingering Michael Kors brand fatigue could still derail margin recovery and limit any upside implied by the undervaluation case.
Find out about the key risks to this Capri Holdings narrative.
Build Your Own Capri Holdings Narrative
If this perspective does not quite align with your own, or you would rather dig into the numbers yourself, you can build a fresh narrative in just a few minutes, Do it your way
A great starting point for your Capri Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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