2023-04-25 08:31:41 ET
Capri Holdings ( NYSE: CPRI ) stock slid in premarket action on Tuesday as Jefferies took its rating on the stock to Hold from a prior Buy.
Equity analyst Ashley Helgans reined in her rating due to “pressure on the accessible luxury consumer” in 2023 and channel checks that show slowing momentum in Michael Kors. Discounts also suggest the company is grappling with inventory and elasticity issues for the brand,
“We [downgrade] to Hold as we see underappreciated macro, brand and channel risk to estimates which would further challenge sentiment,” Helgans wrote. “We believe CPRI has a solid runway for growth LT as it can improve its store operations, grow ecom, expand categories, and further penetrate the Asia region, but we rate the stock as Hold as we believe current risk from the
Michael Kors brand acceleration strategy falling short of expectations and macro headwinds are likely to weigh on sentiment and results near-term.”
She cut her price target to $45 from a prior $58. Shares of Capri ( CPRI ) slipped 2.23% before the bell on Tuesday.
Read more on Raymond James’ recent upgrade to Strong Buy .
For further details see:
Capri Holdings cut to Hold as Jefferies highlights macro concerns