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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