Morgan Stanley said the long-term guidance issued at Capri Holdings' ( NYSE: CPRI ) investor day event was both compelling and achievable, even if the time frame to achieve targets is less clear.
Analyst Kimberly Greenberger noted that brand strategy, product/category mix shift, customer base diversification, & store productivity all clearly underpin CPRI's overall goals, but each individual brand is undertaking varying initiatives set to their needs and stages of growth.
"We believe this approach is nuanced versus peers & allows brand leaders to tailor strategies, increasing the probability of success in our view. Investors seemed to respond positively to the plan."
The apparel stock is noted to be trading at a deep discount, which Morgan Stanley thinks could prompt some buyback actions from the company. MS reiterated an Overweight rating on CPRI and maintained a price target of $65.
Shares of CPRI fell 1.05% premarket to $47.90, but are still up more than 7% for the week.
Dig into some of the highlights from the Capri Holdings Investor Day.
For further details see:
Capri Holdings is recommended at Morgan Stanley for valuation, long-term potential