UPDATE: ISI Group Downgrades Fossil to Hold
ISI Group reduced its rating on Fossil (NASDAQ: FOSL) from Buy to Hold with a price target of $100.
ISI Group commented, "We are downgrading FOSL to HOLD from BUY given our belief that the company is at a tricky crossroads, faced with the high risk-high reward opportunity to make the aggressive investments and strategic actions necessary to become the dominant, premium brand watch company globally. … FOSL's watch platform could easily be worth 25-30x earnings in our opinion, implying a $100+ share price just for the watch business. However, although management has executed phenomenally over the last 3 years, we would like to get greater visibility into the voracity of management's pursuit of this unprecedented multi-brand watch opportunity before pounding the table again."
Fossil closed at $88.39 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.