UPDATE: Piper Jaffray Downgrades Fossil (FOSL) to Underweight
Piper Jaffray downgraded Fossil (NASDAQ: FOSL) from Neutral to Underweight with a price target of $72. The change follows soft Q4 results and guidance.
Analyst Erinn E. Murphy said, "While Q4 EPS hit our $3.00 estimate, forward guidance was significantly below expectations--with EPS in a range of $5.45-$6.05 vs. our Street-low $7.05 and the Street's $7.52. While we were cautious into Q4, we are more concerned following the quarter as we see signs of watches slowing, NA wholesale slowing further and higher investments curtailing margins. As such, we believe FOSL shares likely underperform the peer group on a 12-month basis. Despite estimates being revised significantly today, with new competitors in the wearables space and the Apple Watch still to launch, we see potential for multiple contraction over the period. As such, we believe the shares should trade at 12.5x our FY15 EPS of $5.75 estimate ($72 PT)."
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 $99.32 yesterday.