Citi analyst Paul Lejuez says PVH Corp.'s (PVH) Q3 results were "decent" and that its guidance for Q4 seems achievable. The bigger news coming from the earnings call was that management is looking for acquisition opportunities, Lejuez tells investors in a research note. He believes PVH wants to diversify into accessories, which could point to Tapestry (TPR) and Capri Holdings (CPRI) as potential candidates. While paying the right price for an acquisition could be a positive for PVH, the idea that the company would use free cash flow for this purpose "also adds some risk to the story," contends Lejuez. He keeps a Neutral rating on PVH Corp.

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.