Analysts’ Opinions Are Mixed on These Consumer Goods Stocks: Oxford Industries (NYSE: OXM) and Fabrinet (NYSE: FN)

Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Oxford Industries (OXMResearch Report) and Fabrinet (FNResearch Report).

Oxford Industries (OXM)

B.Riley FBR analyst Susan Anderson reiterated a Buy rating on Oxford Industries today and set a price target of $87. The company’s shares closed last Monday at $79.50.

Anderson noted:

“Oxford Industries (OXM) reported adj. 2Q EPS of $1.84, vs. B. Riley FBR/consensus of $1.86. Results were driven by positive comps in both brands with +3% at Lilly Pulitzer. GM levered +40 bps vs. B. Riley FBR/ consensus of +10 bps/+14 bps, while SG&A deleveraged –15 bps vs. B. bps/+25 bps. Management provided 3Q19 adj. EPS guide of $0.01–$0.11 (vs. B. Riley FBR/ consensus of $0.14), which includes $0.05 of tariff impact and updated 2019 adj. EPS from $4.45–$4.65 to $4.25–$4.45, which includes $0.20 of tariff impact (vs. B. Riley FBR/ consensus of $4.55/$4.54), while they reiterated the 2019 top line. Management highlighted that, while DTC sales were strong across all brands, pressure at wholesale and outlet were responsible for a bit lighter top line.”

According to TipRanks.com, Anderson is a 2-star analyst with an average return of 0.3% and a 44.1% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Columbia Sportswear.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Oxford Industries with a $87 average price target.

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Fabrinet (FN)

In a report released today, Dave Kang from B.Riley FBR assigned a Hold rating to Fabrinet, with a price target of $54. The company’s shares closed last Monday at $55.38.

Kang wrote:

“We met with Fabrinet (FN—Neutral, $54 PT) CEO Seamus Grady, yesterday (9/12). One of the main takeaways was the compelling growth opportunities with Infinera (INFN—Buy, $6.50 PT). FN has completed the transition of INFN’s Coriant production from Germany to its Pinehurst facility in Thailand. While the company has commenced production, Mr. Grady believes it will be at 50% in F1Q (Sep), eventually ramping to 100% by the end of F2Q (Dec). He reiterated his expectation that INFN has the potential to be a 10% customer for FY20, implying the company most likely has a robust forecast from INFN—this seems to be consistent with the strong order activities reported by INFN management. FN has bought inventories from Coriant in order to ensure a smooth transition.”

According to TipRanks.com, Kang is a 5-star analyst with an average return of 19.7% and a 64.7% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as DASAN Zhone Solutions Inc, Applied Optoelectronics, and Acacia Communications.

Fabrinet has an analyst consensus of Moderate Buy, with a price target consensus of $58.17.

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