UPDATE: Benchmark Company Initiates Coverage on A.T. Cross Company with Buy Rating, $20 PT on Good Upside Potential

In a report published Friday, Benchmark Company analyst Ronald Bookbinder initiated coverage on A.T. Cross Company ATX with a Buy rating and $20.00 price target. In the report, Benchmark Company noted, “We contend that the shares have upside potential, given the Company's growth and operating margin opportunities. We believe over the next couple years, A. T. Cross could continue to expand demographically and geographically and improve its door growth with its sunglass brands, which could lead to years of revenue growth. Through its entrance into the prescription and high technology sunglasses, we expect the company to continue to drive revenue growth and enter new markets. Given the solid balance sheet, cash flow, profitability, and management's improving execution, we believe shares should trade at a higher multiple. We have set a price target of $20 based on 13x our FY13 sunglass EBITDA estimate, plus $40 million for the value of the pen division.” A.T. Cross Company closed on Thursday at $16.79.