(Updates)

** Shares of Michael Kors owner Capri Holdings up ~7% at $23.03 in early trading

** Italy's Prada is among the potential suitors looking at fashion group Versace, which Capri has put up for sale, and has been working with Citi to evaluate any bid, a person with knowledge of the matter told Reuters on Friday

** In November, Coach-owner Tapestry abandoned an $8.5 billion deal to buy Capri

** Capri has hired Barclays to look at strategic options, including the sale of its Versace and Jimmy Choo brands, Reuters reports

** Source told Reuters entire Capri Holdings group could also be up for sale

** Wells Fargo raises rating on CPRI to "overweight" from "equal weight" and says, "given the current losses generated by the brand (Versace), this would be an immediate positive for equity holders even if the sale came at a depressed price"

** Citigroup upgrades CPRI stock to "buy" from "neutral"

** CPRI has made significant improvements to Versace's accessory assortments and made the brand more appealing giving an acquirer less work to improve Versace from here than CPRI did back in 2019, Citigroup analysts say

** Stock fell more than 58% in 2024

(Reporting by Ananya Mariam Rajesh in Bengaluru)

((AnanyaMariam.Rajesh@thomsonreuters.com ; X: ))