Fossil (FOSL) Shares Surge Amid Upbeat Presentation at ICR XChange Conference; Brean Murray Remains Aggressive Buyer

Brean Murray's Eric Beder is attributing a sharp move higher in shares of Fossil (Nasdaq: FOSL) Thursday morning to a positive presentation at the Integrated Corporate Relations XCHANGE conference.

After opening flat and pushing into the red earlier, Fossil shares surged about 6 percent midday. The stock is now up 6.8 percent to $84.79.

Beder called Fossil's presentation "one of the few upbeat presentations and breakout sessions..." at the conference. "We believe the company, now even further bolstered by the acquisition of Skagen, continues to be one of the most impressive growth stories in our universe, with potential for greater upside in 2012, given price increases coming on and further gains in automation and anniversarying watch movement cost increases for margins to also begin to increase."

The Brean Murray analyst pointed to several positive catalysts:

• managers have indicated Skagen "could eventually achieve sales as big as the Fossil brand;"
  
• no slowdown in Europe;
  
• despite a strong 10 percent growth rate in stores, owned-store expansion in 2012 is already farther ahead;
  
• ongoing price increases, and
  
• "Michael Kors remains a roaring double-digit growth story and is now beginning to materially expand intentionally, as Michael Kors opens new stores."

Beder said Brean Murray remains aggressive buyers of the stock. The firm maintains a $100 price target on Fossil shares.

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