BUZZ-Capri jumps after J.P.Morgan hikes PT on 'gradual improvement' at brands

Reuters12-16
BUZZ-Capri jumps after J.P.Morgan hikes PT on 'gradual improvement' at brands

** Shares of Michael Kors parent Capri Holdings CPRI.N up ~6% at $22.60 premarket

** Brokerage J.P.Morgan raises PT to $19 from $15, citing continued trajectory of "gradual improvement" at Capri's brands

** Expects sequential recovery at Michael Kors brand in both Q3 and Q4 of 2025, driven by direct-to-consumer $(DTC.AU)$ revenue improvement owing to inventory rebuilding initiatives beginning into holiday season

** Also expects introduction of broader product assortments with price points to target aspirational customers will drive growth at Versace brand during Q3 and Q4 of 2025

** Says, year-over-year improvement in product categories of casual offering to also help revenue at Jimmy Choo

** Gross margin to expand in FY26 owing to lower discounts as Michael Kors and Versace products are not expected to reach "optimal" inventory until fall season of 2025 - brokerage

** Two of 17 brokerages rate the stock "strong buy" and 15 "hold"; their median PT is $21.50 - LSEG data

** Up to last close, stock down about 57% YTD

(Reporting by Anuja Bharat Mistry in Bengaluru)

((AnujaBharat.Mistry@thomsonreuters.com;))

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