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: $33.72 -2.6%

Rating Summary:
    8 Buy, 14 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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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.

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.



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Wells Fargo, Ike Boruchow

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