BofA Securities lowered its price target for Capri Holdings Limited (NYSE:CPRI) from $23 to $21 on May 29 while maintaining its Neutral rating for the company’s shares. The change comes after Capri Holdings’ fourth-quarter earnings per share report revealed a loss of $4.90, significantly short of the $0.13 that analysts had predicted.
Due to the impact of tariffs and Versace’s designation as a discontinued business, Capri Holdings’ management has updated its fiscal year 2026 guidance. In contrast to its earlier estimate of $3.59 billion, which did not include Versace’s numbers, the company now projects F26 revenue to be between $3.3 billion and $3.4 billion. The operating income expectation was also cut from $150 million to $100 million.
Although the F26 operating income and revenue forecasts have been lowered, BofA Securities is sticking to its F26 earnings per share estimate. The firm has, however, raised its EPS estimates for fiscal year 2027 by 22% to reflect the tariff challenges, which should be somewhat mitigated by greater interest income from the Versace sale.
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