Capri Holdings trims to two brands, targets $35-$38/share by 2027 with buybacks and margin recovery.

Capri Holdings has streamlined its portfolio to two brands after selling Versace, reducing net debt and authorizing a significant share buyback. The company's investment outlook depends on stabilizing Michael Kors, improving Jimmy Choo's profitability, and meeting FY2027 guidance for earnings per share and free cash flow. Trading at about 9.9 times FY2027 EPS guidance, successful execution of these goals could boost the stock price to $35–$38 within two years, offering substantial upside potential. The buy rating is contingent on continued operational discipline and financial performance improvements.