UPDATE: Citigroup Upgrades Fossil to Buy on Pullback

Citigroup raises its rating on Fossil

from Neutral to Buy and reiterates its price target of $88 a share. Citigroup says, "We upgrade to Buy (from Neutral) & our $88 price target on 15x implies +22% return. We believe newly lowered EPS is achievable due to improved merchandise execution with new colors & prices, & on growth from new brands Skagen & Lagerfeld. We see beaten-up valuation (22x to 11x, & down 38% 5/9/12) as an opportunity to own a global growth story at a nice price while investors wait to see what we believe will happen." FOSL closed at $71.89 on Tuesday.