Capri Holdings rated 'hold' despite strong FY27 EPS growth outlook and undervaluation potential.

Capri Holdings is rated as a 'hold' due to its improved financial outlook but ongoing long-term underperformance and volatility. Management projects a strong FY27 with 43% EPS growth to $2.15 and 1.5% revenue growth, focusing on revitalizing its brands. The stock trades at a forward P/E of 8.7, below sector and historical averages, indicating potential undervaluation if targets are met. Despite upward revisions in earnings estimates, Capri's inconsistent track record prevents analysts from recommending a buy at this time.