Benchmark Maintains Hold on Fossil

Benchmark is out with its report today on Fossil FOSL, maintaining Hold. In a note to clients, Benchmark writes, "Our 2011 EPS estimate increased to $4.58, from $4.54. Given that EPS should grow in the low 20% range, we believe a low 20's P/E multiple may be appropriate for the stock. Therefore, we are maintaining our price target of $100, based on 22x our 2011 EPS estimate and 12.3x our 2011 EBITDA estimate. We maintained our rating of Hold, given the stock is above our price target. We also worry that given the high valuation and inventory being up 61% at the end of last quarter that a slowdown in sales or earnings could bring a significant decline in the share price. So based on the risk/reward profile, we rate shares of Fossil a Hold." At the time of posting, shares of FOSL were trading pre-market at $120.51, down 2.15% from Thursday's close.