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Benchmark Upgrades Fossil (FOSL) to Buy; Huge Sell-Off Offers Attractive Valuation

May 9, 2012 7:16 AM EDT Send to a Friend
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Price: $109.42 --0%

Rating Summary:
    6 Buy, 11 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Benchmark upgraded Fossil (NASDAQ: FOSL) from Hold to Buy with a price target lowered from $130 to $100.

Analyst, Ronald Bookbinder, said, "FOSL lowered 2012 guidance by $0.17, or 3%, excluding Skagen, on softness in Europe and a poor response to Jewelry, and the shares dropped dramatically, down 37.6%. Guidance, including Skagen but excluding the acquisition fees, actually increased $0.05. We believe this is a Company that is led by a talented management team, has a strong balance sheet, expected free cash flow of $100 million, and growth vehicles from Skagen and emerging markets. While we believe that the multiple should contract given the unknown associated with European growth, we believe the drop in share price is overdone."

FY12 EPS estimate cut from $5.68 to $5.30 and FY13 from $6.58 to $6.45.

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 $78.52 yesterday.




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