MKM Partners analyst Roxanne Meyer lowered her price target on Capri Holdings to $35 and kept her Neutral rating after its below-consensus Q1 revenues due to incremental headwinds from Michael Kors wholesale, even though the company was able to maintain its FY20 guidance. The analyst still sees an opportunity for Capri Holdings in FY20 coming from any potential improvement in Michael Kors trends, the launch of new products at Versace and Jimmy Choo, and the continued benefits of lower manufacturing costs.

Capri Holdings (CPRI) shares could fall to the low-to-mid $20s if Tapestry's (TPR) $57 per share takeover is successfully blocked by the Federal Trade Commission, Yiqin Shen of Bloomberg reports, citing a survey of 20 merger-arbitrage specialists. The survey, conducted on Tuesday, focuses on merger-arbitrage estimates on the Capri's downside price - a level that reflects the stock's fundamental value by the end of 2024, when the outcome of the FTC's challenge is expected to be either upheld or overturned in court, Shen notes. Shares of Capri Holdings are down 5% to $34.81 in midday trading.

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Telsey Advisory lowered the firm's price target on Capri Holdings to $42 from $57 and keeps a Market Perform rating on the shares. The Federal Trade Commission announced it filed a lawsuit to block Tapestry's proposed acquisition of Capri, which was not "too surprising" given recent reporting, the analyst tells investors. The firm lowered its price target on the stock given incremental challenges to the probability of completing the deal.