KeyBanc Starts Fossil (FOSL) at Buy, Price Target Offers 35% Upside
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Price: $4.13 +1.23%
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
Rating Summary:
4 Buy, 11 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
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KeyBanc initiates coverage on shares of Fossil (NASDAQ: FOSL) with a Buy rating and $105 price target.
The firm believes FOSL is strongly positioned in the handbag and accessory market just below Coach Inc. (NYSE: COH). Long-term earnings growth will be driven by significant sales and margin opportunities, new store expansion, and aggressive expansion across Asia. KeyBanc forecasts management will open between 80 and 85 new stores on an annual basis.
The company's "test and react" strategy should allow FOSL to continue to gain market share, along with its flexible supply chain and what the firm describes as "industry-leading speed-to-market."
An analyst at KeyBanc comments, "FOSL’s substantial factory ownership and its ability to test and identify key trends allow the Company to shift production of key items quickly to capture the incremental sale. FOSL’s design-todelivery lead time of three to four months (vs. industry average of 9-12 months) and replenishment lead time of two to three months is an unmatched competitive advantage that should allow the Company to continue driving strong market share gains."
For FY11 and FY12, the firm estimates EPS of $4.51 and $5.51.
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 $79.27 yesterday.
The firm believes FOSL is strongly positioned in the handbag and accessory market just below Coach Inc. (NYSE: COH). Long-term earnings growth will be driven by significant sales and margin opportunities, new store expansion, and aggressive expansion across Asia. KeyBanc forecasts management will open between 80 and 85 new stores on an annual basis.
The company's "test and react" strategy should allow FOSL to continue to gain market share, along with its flexible supply chain and what the firm describes as "industry-leading speed-to-market."
An analyst at KeyBanc comments, "FOSL’s substantial factory ownership and its ability to test and identify key trends allow the Company to shift production of key items quickly to capture the incremental sale. FOSL’s design-todelivery lead time of three to four months (vs. industry average of 9-12 months) and replenishment lead time of two to three months is an unmatched competitive advantage that should allow the Company to continue driving strong market share gains."
For FY11 and FY12, the firm estimates EPS of $4.51 and $5.51.
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 $79.27 yesterday.
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