UPDATE: Piper Jaffray Upgrades Fossil Group to Overweight, Raises PT on Accelerating Sales Catalysts, Margin Inflection Point

In a report published Wednesday, Piper Jaffray analyst Erinn E. Murphy upgraded the rating on

from Neutral to Overweight, and raised the price target from $121.00 to $147.00. In the report, Piper Jaffray noted, “We are raising estimates, increasing our price target to $147 and upgrading shares of FOSL from Neutral to Overweight tied to our belief that sales catalysts are accelerating, and margins are at a positive inflection point. We believe FOSL is benefiting from a solid watch cycle, an evolving portfolio of global lifestyle brands (several rank well in our Teen Survey), macro-economic recovery in Europe (28% of sales) and expanding global distribution, in particular in Asia. From a margin perspective, we believe op margins over time can be in excess of 20% (from ~17% today). Separately, with earnings consistency (and potential outperformance), FOSL's multiple could expand.” Fossil Group closed on Tuesday at $124.21.