Luxury goods company Capri Holdings (NYSE:CPRI) saw its shares rise 1.85% on Friday ahead of a key meeting at the Federal Trade Commission (FTC) on Monday. Investors have recently been worried that the FTC might try to block Capri’s $8.5 billion deal to merge with Tapestry (NYSE:TPR). The two companies have been under the FTC’s microscope since November, especially on concerns about what this deal could mean for jobs and competition in the handbag market.
Although Capri’s merger has already gotten the thumbs up in Europe and Japan, the U.S. is the last major hurdle. If the FTC puts a stop to the deal, Capri’s stock price could take a serious hit, possibly plummeting to the high-teens or low $20s, according to analysts at TD Cowen. Still, the analysts are estimating a better than 50% chance that the deal will go through.
What Is the Target Price for TPR Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TPR stock based on 11 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 11% year-to-date increase, the average TPR price target of $51.29 per share implies 26.27% upside potential.
