Schaeffer's Top Stock Picks for '25

Luxury Retail Stock Locks In Bull Notes

There is plenty of room for more analyst upgrades as well

Deputy Editor
Sep 21, 2020 at 11:20 AM
facebook X logo linkedin


Capri Holdings Ltd (NASDAQ:CPRI) is in focus today after receiving an upgrade from Morgan Stanley to "overweight" from "equal weight." The firm cited global retail's faster-than-expected recovery, also observing that Versace's latest results underscore its long-term revenue and margin potential. Meanwhile, Piper Sandler also lifted its price target to $21 from $15. As the broader market slips, CPRI was last seen down 0.4% at $20.75.

Rejected by the $23 area last week for the second time since its March lows, the equity is now struggling to retake its 200-day moving average, briefly toppling the trendline last week for the first time since late January. Struggling just below this level today, however, CPRI is down 46% year-to-date. 

Coming into today, 13 of the 17 analysts in coverage carried a "hold" on CPRI, with the remaining four at "strong buy" ratings. There is plenty of room for more upgrades/price-target hikes as well, seeing as the 12-month consensus price target of $19.55 still at a 5.7% discount to current levels. 

Though short interest is down 14.5% during the last two reporting periods, there is still plenty of pessimism to be unwound that could push CPRI higher. The 12.87 million shares sold short account for 8.8% of Capri stock's available float. In other words, it would take nearly four days to buy back these bearish bets at CPRI's average pace of trading.

Calls have gained popularity in the options pits. The stock's 10-day call/put volume ratio of 9.63 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 88% of readings from the past year. Options look like a decent way to go when weighing in on the stock, as it is currently seeing attractively priced premiums. CPRI's Schaeffer's Volatility Index (SVI) of 70% sits higher than just 17% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter