logo
  Join        Login             Stock Quote

Fossil (FOSL) Downgraded To 'Sell' By Brean Capital, PT $85

 January 30, 2013 01:19 PM
 


(By Balachander) Brean Capital LLC downgraded rating on shares of Fossil Inc. (NASDAQ: FOSL) to "sell" from "hold" and instituted a price target of $85.

The brokerage believes the recent aggressive run up in the stock is unwarranted, especially in the near term, as it views China as slowing and Europe and the domestic markets remaining under pressure.

Brean Capital said near term material catalysts are clearly on the horizon.

"We want to emphasize that this call is very much risk/reward and shorter term predicated; we believe that, in the longer term, Fossil will remain a dominant timepiece brand," the brokerage wrote in a note.

[Related -Foot Locker, Inc. (FL) Put Options Active As Stock Gets Stomped]

The brokerage lowered 2012 EPS estimate to $5.34 from $5.40 and 2013 EPS to $5.81 from $6.00, resulting in both of its projections being below consensus.

Brean Capital said it now assumes less aggressive growth in Europe and the domestic markets, coupled with less aggressive margin expansion. The brokerage believes management will provide disappointing guidance when 4Q results and initial 2013 guidance is released before the open on February 12.

On Wednesday, shares of the fashion accessories designer retreated 2.52 percent to trade at $104.00. Over the past year, the stock has been trading between $62.77 and $139.20.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageReversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of read on...

article imageJobless Claims Fall To 15-Year Low

After reading today’s weekly update on jobless claims the Fed’s comment yesterday that “economic activity read on...

article imageGreece, EMU and Democracy

One more post on Greece, possibly not the last read on...

article imageA Tangled Tale Of Rate Hikes & Inflation Expectations

The Federal Reserve continues to signal that it will start raising interest rates later this year, read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.