Capri Holdings stock’s ( NYSE: CPRI ) stark decline on Wednesday was not commensurate with the earnings disappointment on Wednesday, according to Citi analyst Paul Lejuez.
“The 3Q miss and guidance reduction were certainly a disappointment (and a surprise), but we believe the 25% stock decline is unwarranted,” he told clients. “Issues in Kors’ US wholesale channel can’t be ignored, but the strong performance in Kors’ retail channel supports the underlying health of the brand.”
He added that Versace also performed above expectations for the quarter, a positive that appeared ignored in the selloff. Lejuez reiterated its Buy rating, but trimmed his price target to $63 from a prior $75.
Read more on the broad-based selloff among apparel stocks on Wednesday .
For further details see:
Capri’s post-earnings selloff is overdone - Citi