Fossil Group (FOSL): Successful Wearables Launch May Open The Door To Growth - Wells Fargo
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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.
Shares of Fossil closed at $29.18 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesWells Fargo, Ike Boruchow
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