Jefferies Remains Extremely Bullish on Fossil (FOSL) Following Analyst Meeting, Buy Now
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Price: $5.61 +0.54%
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies remains extremely bullish on shares of Fossil (NASDAQ: FOSL) following its analyst meeting in Texas and is reiterating its Buy rating and $130 price target on the shares.
Management at FOSL reaffirmed strong growth potential and opportunities in new distribution, expanding business lines, and new licenses. The firm believes Fossil has the ability to have to sustainable annual top-line growth 20 percent over the long-term and earnings growth of 20 percent annually.
The Michael Kors brand will end the year with $300 million in total retail sales and the firm believes it has the potential to grow sales to $750 million as it spreads across Europe and Asia and grows the jewelry segment.
China only makes up 15 percent of Fossil's total business right now, but Jefferies anticipates it will make up around 33 percent of total business in just over 5 years.
An analyst at Jefferies comments, "FOSL is a near monopoly in the rapidly expanding watch category with substantial global growth opportunities. Margins and returns are set to rise and structurally stay higher, and earnings growth will continue to outpace many consumer retail/wholesale companies. As a result, we believe upward earnings revisions will continue and multiple expansion is warranted, which shloud drive shares higher."
Currently, Jefferies forecasts earnings per share of $1.81 for Q4 and $4.55 for FY11. For FY12, the firm estimates earnings of $5.65 per shares. Total sales for FY11 and FY12 is estimated to be $2.58 billion and $3.07 billion.
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 $91.58 yesterday.
Management at FOSL reaffirmed strong growth potential and opportunities in new distribution, expanding business lines, and new licenses. The firm believes Fossil has the ability to have to sustainable annual top-line growth 20 percent over the long-term and earnings growth of 20 percent annually.
The Michael Kors brand will end the year with $300 million in total retail sales and the firm believes it has the potential to grow sales to $750 million as it spreads across Europe and Asia and grows the jewelry segment.
China only makes up 15 percent of Fossil's total business right now, but Jefferies anticipates it will make up around 33 percent of total business in just over 5 years.
An analyst at Jefferies comments, "FOSL is a near monopoly in the rapidly expanding watch category with substantial global growth opportunities. Margins and returns are set to rise and structurally stay higher, and earnings growth will continue to outpace many consumer retail/wholesale companies. As a result, we believe upward earnings revisions will continue and multiple expansion is warranted, which shloud drive shares higher."
Currently, Jefferies forecasts earnings per share of $1.81 for Q4 and $4.55 for FY11. For FY12, the firm estimates earnings of $5.65 per shares. Total sales for FY11 and FY12 is estimated to be $2.58 billion and $3.07 billion.
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 $91.58 yesterday.
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