Fossil Group (FOSL): Successful Wearables Launch May Open The Door To Growth - Wells Fargo

October 25, 2016 9:14 AM EDT
Get Alerts FOSL Hot Sheet
Price: $25.63 +1.87%

Rating Summary:
    8 Buy, 14 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
Trade FOSL Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial here.

Wells Fargo analyst, Ike Boruchow, reiterated his Market Perform rating on shares of Fossil (NASDAQ: FOSL) but thinks the successful launch of the new wearables collection should have positive implications for both KORS (NASDAQ: KORS)and FOSL. This could be the first positive catalyst for the two names in a long time.

Checks imply strong sell-through for the Michael Kors Access line (boding well for holiday reorder activity). As a result, the analyst estimates a net benefit to Q3 of roughly $40 million, which could allow the company to hit the high end of guidance. From KORS’s perspective, stronger than expected results in the initial launch could contribute nearly $12-$14 million to global sales in KORS’ FYQ2.

The analyst did not touch the ratings but raised EPS estimates and the valuation ranges for both. FOSL's valuation range goes to $25-$27 from $23-$25 and KORS estimates and valuation range to $50-$52 from $48-$50.

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 $29.18 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities

Wells Fargo, Ike Boruchow

Add Your Comment