** Kontoor Brands KTB.N shares jump 5.1% to $68.38 on Thurs after co agreed to sell its Lee denim brand to Authentic Brands Group for up to $1 bln

** The deal includes $750 mln initial payment with potential $250 mln earnout, allowing KTB to focus on its higher-growth Wrangler brand

** Apparel maker's shares now up ~11% YTD compared to 9% advance in S&P 600 Apparel, Accessories & Luxury Goods index .SPSMCTEXT

** Stock recently traded at 11 times expected earnings, in line with its 5-yr avg, suggesting it may be close to fairly valued, per LSEG data

** Avg rating of 9 analysts is "buy"; median PT of $96 implies about 40% upside to current levels