Capri Holdings assumed with an Overweight at Morgan Stanley

Morgan Stanley analyst Alex Straton assumed coverage of Capri Holdings with an Overweight rating with a price target of $55, down from $58, following the company’s "miss & lower" guide Q3 report. Taken together, the Q3 miss and FY24 and Q4 guide down against high expectations sent the stock down 24%, which the firm notes fully reversed the stock’s outsized 16% year-to-date gain. The stock could be range-bound until EBIT growth returns, the analyst tells investors.