Capri Holdings (CPRI) stock fell sharply sharply Friday following a federal judge's decision to block its proposed acquisition by Tapestry (TPR), citing antitrust concerns. Both companies have stated their intent to appeal the decision

Bernstein analyst Aneesha Sherman joins Market Domination to evaluate the investment potential of both companies in light of this development.

"The real question is can this be overturned in the appeal," Sherman explained, highlighting that the appeal process could extend over several months. She emphasizes February 10, 2025 as "sort of the final date" when either party can legally terminate the agreement.

Sherman noted that "the odds have heavily shifted" toward the deal's collapse, which she views as "very good for Tapestry." She points to Capri's declining performance since the acquisition announcement, stating the company has had "deteriorating performance every single quarter, so it's looking less and less appealing as an asset to purchase."

On the other hand, Sherman only sees potential upside for Capri if they were to sell the Jimmy Choo and Versace brands to hone in on Micheal Kors.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Angel Smith