In a report released yesterday, Tom Forte from Maxim Group reiterated a Buy rating on Fossil Group, with a price target of $5.00.
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Tom Forte has given his Buy rating due to a combination of factors that highlight Fossil Group’s improving financial health and strategic initiatives. The company recently reported third-quarter results that surpassed expectations in sales, gross margins, and adjusted EBITDA, while also reaffirming its 2025 guidance. This performance, coupled with the completion of a debt restructuring that extends maturities to 2029, significantly reduces refinancing risks and enhances liquidity and financial flexibility.
Furthermore, the management’s focus on improving sales quality and operational efficiency is evident in the company’s disciplined expense control and cost-saving measures, which have already surpassed $60 million year-to-date. Despite the challenges posed by minimum-royalty shortfalls, the underlying gross margin has improved due to lower promotional activity and strategic pricing adjustments. These efforts position Fossil as a compelling turnaround story, with shares trading at a discount compared to peers, supporting the reiteration of a Buy rating and a 12-month price target of $5.00.
According to TipRanks, Forte is a 4-star analyst with an average return of 4.6% and a 42.19% success rate. Forte covers the Consumer Cyclical sector, focusing on stocks such as Fossil Group, Jakks Pacific, and Amazon.