Capri Holdings Ltd (CPRI) Stock Forecast: In the Wake of the $8.5 Billion Tapestry Acquisition

August 28, 2023
Zheman ZhongThis CPRI Stock Forecast article was written by Zheman Zhong – Financial Analyst at I Know First.

Summary

  • Tapestry will acquire Capri Holdings for $8.5 billion, consolidating six luxury brands under one corporate umbrella.
  • The acquisition allows Tapestry to diversify its product line and geographic reach, reducing over-reliance on the Americas and accessories.
  • Capri Holdings share price jumps 55.7% post-announcement, nearing the acquisition offer of $57.00 per share, signaling investor confidence.
  • Capri shows strong profitability metrics but weaker liquidity ratios, suggesting potential benefits from Tapestry's financial backing.
  • Compared to industry peers, Capri appears mostly undervalued, although a high Price to Book ratio warrants investor caution.

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