Benchmark Upgrades Fossil (FOSL) to Buy; Strong Start to the Holidays and Valuation
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Price: $5.57 --0%
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 12
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Benchmark upgraded Fossil (NASDAQ: FOSL) from Hold to Buy, maintains price target of $115.00.
Benchmark analyst says, "Given the recent pullback in the share price from approximately $110 to $81, we believe lower expectations are baked into the stock. While the Company recently guided down Q4 due to less of a benefit from forex, and it does appear that the US wholesale business is slowing, comps are slowing, and gross margin pressure continues, we believe this is now reflected in the share price. Globally, we contend that the watch trend continues, especially in Asia and Latin America, and with a strong start to the holiday season at retailers, we believe there may be upside to estimates in Q4."
"Our Q4 EPS estimate remains $1.78, with 20 bp of operating margin expansion and benefits from share repurchases...We are forecasting a 4.8% reduction in share count, benefiting the quarter by approximately $0.08. Our 2012 EPS estimate remains $5.55, with continued gross margin pressure and slowing growth in the US offset by stronger revenue growth in Asia and Latin America as the global watch trend continues."
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 $81.26 yesterday.
Benchmark analyst says, "Given the recent pullback in the share price from approximately $110 to $81, we believe lower expectations are baked into the stock. While the Company recently guided down Q4 due to less of a benefit from forex, and it does appear that the US wholesale business is slowing, comps are slowing, and gross margin pressure continues, we believe this is now reflected in the share price. Globally, we contend that the watch trend continues, especially in Asia and Latin America, and with a strong start to the holiday season at retailers, we believe there may be upside to estimates in Q4."
"Our Q4 EPS estimate remains $1.78, with 20 bp of operating margin expansion and benefits from share repurchases...We are forecasting a 4.8% reduction in share count, benefiting the quarter by approximately $0.08. Our 2012 EPS estimate remains $5.55, with continued gross margin pressure and slowing growth in the US offset by stronger revenue growth in Asia and Latin America as the global watch trend continues."
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 $81.26 yesterday.
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