SunTrust analyst Pamela Quintiliano believes Kate Spade (KATE) could be worth in the $18-$23 per share range in a potential takeout.

The stock closed Thursday up 63c to $18.49. Bloomberg yesterday, after the Wall Street Journal broke the story on Wednesday, said the handbag maker is exploring strategic options and plans to start a formal auction process in January.

Kate Spade has a "strong brand" that should make it an "attractive acquisition target," Quintiliano tells investors in a research note. She believes a takeover is likely and upped her price target for the shares to $18 from $15.

The analyst feels the bidder would likely be a strategic buyer with leading market share in the accessories space. Coach (COH) and Michael Kors (KORS) have been speculated as potential candidates to acquire Kate Spade. Quintiliano keeps a Hold rating on Kate Spade.