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Capri Holdings (NYSE:CPRI) edged higher by 0.5% after an investor said he sees the potential for 70% upside for the luxury goods company even if the company doesn’t complete its planned sale to Tapestry (TPR).
Maven Investment Partners’ senior portfolio manager Manuel Blanco still expects the $8.5 billion sale to be completed after the Federal Trade Commission sued to block the combination in April, according to a Bloomberg report, which cited comments Blanco made at the Sohn Monaco conference on Wednesday. A trial has been set for Sept. 9.
Even if the deal doesn’t go through, Blanco believes Capri (CPRI) is a good candidate for a breakup.
Blanco’s comments are similar to ones made by Wells Fargo analyst Ike Boruchow analyst on Tuesday, who upgraded shares of Capri (CPRI) to overweight, writing that he sees a scenario where CPRI may be worth $47 a share in sum-of-the-parts analysis, with CPRI selling off all of its brands if the deal with Tapestry (TPR) is eventually terminated.