UPDATE: ISI Upgrades Fossil Group Inc

ISI Group on Thursday upgraded shares of Fossil Group Inc (NASDAQ: FOSL) to Buy from Neutral with a $125 price target.

Omar Saad increased the investment rating on Fossil for three main reasons:

• "The smartwatch threat, including Apple Watch, is overblown and illegitimate.
• Fears ahead of the Michael Kors license expiration next year are misplaced, and it will turn out to be a relative non-event in our view.
• The strong fashion watch cycle of the last several years is much more than a fleeting fad."

Most importantly, analysts feel that smartwatches are not practical and find many flaws within the design of smart watches.

Shares of Fossil recently traded at $94.88, up 2.3 percent.