ISI Upgrades Fossil Group Inc

On Thursday, ISI Group upgraded shares of Fossil Group Inc. FOSL to Buy from Neutral with a $125 price target.

Omar Saad increased the investment rating on Fossil for three main reasons:

• The smartwatch threat, including Apple Watch, is overblown and illegitimate.
• Fears ahead of the Michael Kors license expiration next year are misplaced, and it will turn out to be a relative non-event in our view.
• The strong fashion watch cycle of the last several years is much more than a fleeting fad.

Most importantly, analysts feel that smart watches are not practical and find many flaws within the design of smart watches.

Shares of Fossil recently traded at $94.23 up 1.6 percent.