Still riding the positive momentum from a satisfying quarterly earnings report, Capri Holdings (NYSE:CPRI) stock cruised to a more than 7% gain on Monday. Also providing plenty of fuel for this was a set of analyst price target increases on the fashion conglomerate’s stock.
A company in style for the market
Capri’s second quarter of fiscal 2027 results were published Friday morning. Although revenue declined by almost 6% year over year to $809 million, the company flipped to a non-GAAP (adjusted) net income of $45 million. On top of that, it obliterated analyst profitability estimates and comfortably beat on the top line.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
On Monday, analysts tracking the stock reacted overwhelmingly positively to the consumer discretionary company’s performance. Several expressed this by raising their Capri price targets.
Among these was Brooke Roach from the ever-influential investment bank Goldman Sachs (NYSE:GS). She lifted hers to $24 from $18, albeit while maintaining her neutral recommendation. A more bullish note was authored by Barclays‘ (NYSE:BCS) Adrienne Yih, who now feels the stock is worth $24 apiece, up from her preceding $19. She kept her overweight (i.e., buy) recommendation intact.
A tale of two fashion lines
I’m always rather hesitant about fashion stocks, as they’re subject to trends, whims, and the health of the economy. That said, Capri’s Jimmy Choo line did especially well and looks set to continue doing so, even if the larger Michael Kors unit is currently in turnaround mode. Meanwhile, management is effectively trimming costs behind the scenes. If I were to consider buying any fashion title, I’d certainly add this one to the list.
Should you buy stock in Capri right now?
Before you buy stock in Capri, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Capri wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $334,793!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,257,420!*
