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What: Shares of luxury watch-maker Movado Group (NYSE: MOV ) were looking stylish today, jumping 9% on an upgrade by Citigroup.
So what: Citi bumped up its rating from neutral to buy, saying, "Global accessories represent the future" of this sector. Analyst Oliver Chen also said that revenue growth this year should significantly add to margins, and he noted that the company derives 42% of its revenue at the wholesale level, so it's partially shielded from consumer volatility. In addition, international markets represent a ripe opportunity for the company.
Now what: Movado, which sells watches under other high-end labels such as Hugo Boss and Lacoste in addition to its own, seems well-positioned going forward. The company has beat estimates in its last four quarters, trades at a reasonable multiple, and shares have been surging since the recession. Some watch makers have come under pressure from the rise of cell phones, but Movado's luxury angle seems to protect it from that problem. I'd expect continuing strong performance in the near term. To keep track of Movado, just add the company to your Watchlist here.