Capri Holdings Limited (NYSE:CPRI) shares are trading lower after a judge blocked its acquisition by Tapestry, Inc. (NYSE:TPR). The company plans to jointly file a notice of appeal with Tapestry in response to the court’s decision.

Wells Fargo analyst Ike Boruchow has maintained an Equal-Weight rating on Capri Holdings, lowering the price target from $42 to $23.

In a press release, Capri announced its intention to appeal the U.S. District Court for the Southern District of New York’s ruling, which granted the Federal Trade Commission’s motion for a preliminary injunction to block Tapestry’s acquisition.

The parent company of world class luxury brands like Jimmy Choo, Versace, Michael Kors said, “Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands.”

The company has established its reputation through the design of exceptional and innovative products across all fashion luxury categories, drawing strength from the unique heritage of its brands, the diversity and passion of its team, and its commitment to clients and communities.

Following an eight-day trial in which the Federal Trade Commission argued that a merger between Capri and Tapestry would remove competition from the U.S. handbag space, a judge has moved to block the pending merger.

Also Read: Capri Holdings Stock Drops By Half After Judge Blocks Tapestry Merger

Meanwhile, Tapestry shares are gaining on Friday.

Wells Fargo analyst Ike Boruchow maintains Tapestry with an Overweight rating, raising the price target from $50 to $65.

“Today’s decision granting the FTC’s request for a preliminary injunction is disappointing and, we believe, incorrect on the law and the facts,” Tapestry said in a press release.

Tapestry and Capri operate in an industry that is intensely competitive and dynamic, constantly expanding, and highly fragmented among both established players and new entrants.

“We face competitive pressures from both lower- and higher-priced products and continue to believe this transaction is pro-competitive and pro-consumer,” Tapestry said. “We intend to appeal the decision, consistent with our obligations under the merger agreement.”

Price Action: CPRI shares are trading lower by 47.2% to $21.94 at last check Friday.

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