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Citigroup initiated coverage on Tumi Holdings (NYSE: TUMI) with a Buy rating and a $26 price target.

Citigroup said, "Buy Tumi on +20% global growth given low distribution saturation levels, credible lifestyle brand equity, fixed cost leverage, new mgmt, and gross margin upside on increasing own-retail penetration. Price target $26 on 21x which implies a +26% return. Solid fundamentals: net cash of $18mm, est. $30mm FCF, op margin 18% vs. peers average in low 20s. High margin growth to con't as we believe in Tumi's brand equity/recognition."

Tumi Holdings closed at $21.40 on Thursday.

Posted-In: CitigroupAnalyst Color Initiation Pre-Market Outlook Analyst Ratings


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