Fossil (FOSL) PT, Estimates Cut at Mizuho Following More Weak Results

November 4, 2016 7:09 AM EDT
Get Alerts FOSL Hot Sheet
Price: $34.62 +2.03%

Rating Summary:
    8 Buy, 14 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
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Mizuho Securities analyst Betty Chen cut estimates and lowered her price target on Fossil (NASDAQ: FOSL) to $25.00 (from $29.00) following weak results and outlook. The firm maintained a Neutral rating.

Chen commented, "We are lowering our estimates and PT to $25 (from $29) on a lower guidance range given weak traditional watch demand and softness in jewelry/leather goods. While we acknowledge FOSL's success in integrating Misfit and launching 100+ wearable SKUs across 8 brands, the growing wearable business may be laden with risk from production/supply chain, user adoption, and lower gross margin. We also question the timing of profit improvement initiatives that require heavy, upfront cash charges. With uncertainty related to wearables, FOSL may continue to trade at a discounted ~12x multiple."

The firm's Our 4Q EPS estimate declines to $1.30 from $1.40 reflecting 0% global retail comps and EBIT margin of 8.5%, relative to guidance for $1.07-1.57. They are also cutting FY16 and FY17 EPS estimates to $1.90 and $2.05 from $2.00 and $2.40, respectively.

For an analyst ratings summary and ratings history on Fossil click here. For more ratings news on Fossil click here.

Shares of Fossil closed at $24.71 yesterday.



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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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