The threat of Apple Watch to traditional watchmakers like Fossil is overstated, said Jefferies in a note on Tuesday, which advised investors keep buying shares of Fossil. The Apple Watch threat is diminished by higher-than-expected prices for the watch itself and a limited battery life, said a team of analysts led by Randal Konik. Another downside is that the Apple Watch must be managed by its accompanying iPhone. Fossil is expected to debut its own wearable technology products in the 2015 holiday season, which will charge wirelessly and can be used with any device. Konik advises buying Fossil on compressed full-year 2016 multiples, and the fact that it has a "near-monopoly" status in the global watch industry. Jefferies has a $130 price target on Fossil.
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