) to outperform from neutral.
Analyst Dennis Rosenberg says the upgrade is based on the fact that Tommy men's sportswear has been exceeding plan at retail since spring; reaction to lines for next spring and summer been very favorable; and new CEO David Dyer has taken more hands on approach to managing business, and it looks like he's in early stages of implementing positive changes.
Rosenberg doesn't expect recent brand strength to provide an immediate recovery in sales, but thinks sales will recover in fiscal year 2005 (March). He kept his $1.18 fiscal year 2004 EPS estimate, and raised $1.30 fiscal 2005 forecast to $1.35. He also hiked his $13 12-month price target to $19.