: Capri upgraded to buy at CFRA as it’s trading below the $57 acquisition price being offered by Tapestry

CFRA upgraded Capri Holdings Ltd.’s stock CPRI to buy from hold on Wednesday, and said it’s looking undervalued at its current price. The stock was last quoted at $49.28, below the $57 price offer from rival Tapestry Inc. TPR, which is buying Capri in a deal expected to close in 2024. “We believe shares are now undervalued, trading well below the acquisition price and what we see as fair value,” analyst Zachary Warring wrote in a note to clients. Capri, parent to Michael Kors, Versace and Jimmy Choo, is being acquired by Tapestry, parent to Coach, Kate Space and Stuart Weitzman for about $8.5 billion. Warring lowered his price target for Capri to $55 from $65 and cut his fiscal 2024 and fiscal 2025 EPS estimates by $1, to $5.50 and $6.00 respectively. The stock has fallen 14% in the year to date, while the S&P 500 SPX has gained 19%.

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