Shares of Capri Holdings (NYSE:CPRI), the parent company of Michael Kors, Versace, and Jimmy Choo, jumped approximately 6% to $22.60 in premarket trading following a positive assessment from J.P. Morgan.
The brokerage firm raised its price target for Capri stock to $19 from $15, citing a continued "gradual improvement" trajectory across the company's brands.
J.P. Morgan anticipates a sequential recovery for the Michael Kors brand in the third and fourth quarters of 2025.
This recovery is expected to be driven by growth in direct-to-consumer (DTC) revenue, resulting from inventory rebuilding initiatives beginning in the holiday season.
The brokerage also forecasts growth for Versace in the same period, fueled by the introduction of broader product assortments with price points aimed at aspirational customers.
Additionally, year-over-year improvements in casual offerings are projected to boost revenue at Jimmy Choo.
J.P. Morgan further predicts gross margin expansion in fiscal year 2026 due to reduced discounting, as Michael Kors and Versace products are not expected to reach optimal inventory levels until the fall of 2025.
According to LSEG data, two of the 17 brokerages covering Capri Holdings currently rate the stock as a "strong buy," while 15 maintain a "hold" rating.
The median price target among these brokerages is $21.50.
Despite the recent surge, Capri Holdings stock remains down approximately 57% year-to-date as of the last close.
Comments