KeyBanc Upgrades Fossil (FOSL) to Sector Weight

KeyBanc upgraded Fossil (NASDAQ: FOSL) from Underweight to Sector Weight. Analyst Edward Yruma continues to see a difficult secular environment but he is more constructive on Fossil.

"Our thesis on a 1) slowdown in the watch market and 2) standstill from the AAPL watch has played out (2015E consensus estimates are down 36% over the past 12 months); at 11.3x our 2016 EPS estimate, valuation looks more supportive and we upgrade to SW. We recently met with CEO Kosta Kartsotis and CFO Dennis Secor and came away more confident in the long-term direction of the business. Our UW call was largely predicated on our downbeat view on the watch industry, and in some regards, our view has not materially changed. However, while the fashion watch environment remains challenging, FOSL is still dominant (~50% U.S. share), has multiple watch and non-watch growth levers, and a HSD FCF yield," said Yruma.

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 $62.01 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• American International Group (AIG) PT Raised to $89 at Piper Sandler
• Prysmian SpA (PRY:IM) (PRYMY) PT Raised to EUR53 at HSBC