UPDATE: Brean Capital Initiates Movado Group at Buy on Positive Outlook
In a report published Friday, Brean Capital analyst Eric Beder initiated coverage on Movado Group (NYSE: MOV) with a Buy rating and $44.00 price target.
In the report, Brean Capital noted, “We are initiating coverage of Movado Group, Inc. (‘Movado') with a Buy rating and $44 price target, or 19.0x our FY15 EPS projection of $2.32 (or 16.6x, adjusted for net cash per share of $5.47 at the end of 1QFY14) and 10.1x EV/FY15 EBITDA. We believe the company, with the rollout of the Ferrari line of watches, the revamping of its Coach licensee, and material fashion newness and excitement in its namesake line, is poised to buck the weakening trend in watches and to register solid double-digit, bottom-line expansion in FY14 and FY15, as well as achieve its FY17 stated goal of over $3.00 in EPS. With a valuation more attractive, in our view, than market-leader Fossil, we believe Movado has been an undiscovered growth story with a compelling lineup of catalysts. As the company drives upside, especially in what we view as a growth-starved market, we believe MOV will trade at a valuation more reflective of its strong, double-digit, top- and bottom-line growth prospects; we are buyers of MOV.”
Movado Group closed on Thursday at $36.58.
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