AP News

Fossil shares jump on analyst upgrade


Shares of Fossil jumped Tuesday after a Citi upgraded its rating on the retailer.

THE SPARK: Analyst Oliver Chen sees earnings and stock growth ahead for the company. Fossil's stock is inexpensive now by Chen's assessment as he expects a solid lineup of products and favorable currency will work in the company's favor in the coming year that could boost its value.

THE BIG PICTURE: Fossil makes accessories including watches, jewelry and handbags that it sells in its own stores and other retailers.

The company reported in August that its second-quarter profit climbed 12 percent on growing demand in Asia and strong watch sales. It is expected to report its third-quarter results in November.

THE ANALYSIS: Fossil Inc. is already showing signs of growth and the analyst expects it should make bolder gains in 2013.

The company was already the top moderately priced fashion watch brands and recent licensing agreements, appealing designs and growing demand for its products should help its revenue. Additionally, the company may benefit from changes in the Euro, which has weighed down its performance in the past.

Chen issued a $100 price target on the company's shares, and upgraded his rating to "Buy" from "Neutral."

SHARE ACTION: Shares jumped $6.44, nearly 8 percent, to $91.53 by early afternoon.

Its shares are often volatile and have traded between $62.77 and $139.20 in the past 52 weeks.


Later, Baby
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