Capri Holdings Limited's stock is experiencing a notable uptick in pre-market trading, driven by positive developments from J.P. Morgan. The brokerage firm has raised its price target for Capri from $15 to $19, citing a "gradual improvement" in the company's brand performance. J.P. Morgan anticipates a sequential recovery in the Michael Kors brand during the third and fourth quarters of 2025, fueled by direct-to-consumer revenue improvements and inventory rebuilding initiatives. Additionally, the firm expects growth at the Versace brand through broader product assortments aimed at aspirational customers, while Jimmy Choo is projected to benefit from year-over-year improvements in casual product categories.
The strategic moves by Capri Holdings, including the potential sale of its Versace and Jimmy Choo brands, are also contributing to the positive sentiment. This decision follows a failed $8.5 billion acquisition attempt by Tapestry Inc. due to antitrust issues, which had previously impacted Capri's stock price. The exploration of selling these brands could provide Capri with significant cash inflows, allowing the company to focus on revitalizing its flagship Michael Kors brand. This shift in strategy is seen as a commitment to enhancing shareholder value and could further bolster investor confidence.
Capri Holdings' stock is currently priced at $22.84, reflecting a 6.93% increase from the previous close of $21.36.