Buy - Price 28.91 on Nov. 10
by Jefferies & Co.

We like Fossil's diversified business by channels, brands, geographies, and product categories. [The clothing and accessory-maker's] sales should accelerate in 4Q, and should begin to benefit from an inflection in currency translation. We like the company's value-oriented pricing proposition in this environment and on-trend product in a favorable fashion cycle. Risk/reward is attractive, at 14.5 times 2010E-earnings per share of $2.15 and 6.5 times enterprise value/Ebitda. This compares to a five-year price/earnings range of 7 times to 22 times (16 times average) and group average of 18 times. Our 36 target is based on 17 times 2010 EPS and 7.5 times EV/Ebitda. Risks include a poor macro environment, product missteps, foreign-exchange changes, or loss of management. Market cap: $1.95 billion.

The accessories maker traded double its average daily volume Tuesday.

better

It's who I work for.

Cramer said Fossil is "probably OK," but his worry is that retailers have already had a run. "I wish I liked shopping there more," he said of Fossil.

Piper said it is upgrading Fossil (FOSL) to an Outperform rating as international growth is paving the way for outsized earnings growth.

"We are recommending a short sale on Fossil (FOSL)...The bigger story is that the Fossil brand has become more and more irrelevant. The fashion watch segment has gotten very crowded and sales in Fossil's price range have been in decline...Our forecast is about $1.30 a share this year and the Street estimate is about $1.45 a share. Another interesting item is the company has about 103 days of inventory on hand. That's a lot and it would appear they are going to have to take markdowns...We have an $18 price target. "

Upgraded by Wachovia from Mkt Perform to Outperform

No real value here. No real answers to the question: "what does Fossil do better than anyone else"? Why should anyone buy this stock? Because it's cheap is not compelling.