Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I usually don’t highlight analyst upgrades (or downgrades) for reasons cited by the previous post but there are a few analyst calls today which are quite eye opening, in terms of price increases. Again, I don’t take much heed to them but the lemming herd certainly does. And the magnitude of some of these price increases today is a bit jaw dropping – this morning Jeffries came in and pushed Fossil’s (FOSL) target up from $125 to $160. One has to wonder where these people were when the stocks were much lower in price – the behavior is reminding me of 1999 in some ways; as stocks go up analysts expand the multiple to justify price increases. Also I loved this line: “Fossil has a near monopoly on the watch category”? <– in what universe.
Via StreetInsider:
- Jefferies boosted estimates and its price target on Buy-rated Fossil from $125 to $160 ahead of the Skagen acquisition completion.
- “The watch cycle continues to be very robust, FOSL is a near monopoly in the watch category (huh??) and we see strong global growth ahead especially in Asia. With margins and returns likely headed higher, we think EPS beats, the multiple expands, and the stock rises over the coming quarters.”
- Jeffereries raised Q1 EPS from $0.92 to $0.95 and FY12 from$5.50 to $5.75.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
