Robbie Stephens Recommends Shopping Hilfiger

Analyst sees a sustained turnaround emerging for the fashion retailer

Robertson Stephens upgraded Tommy Hilfiger (TOM ) to buy from long term attractive.

Analyst Janet Joseph Kloppenberg says the worst appears to be over, and she sees a sustained turnaround emerging over the next three to four quarters. Kloppenberg also thinks Tommy will return to a pattern of increased profitability beginning in fiscal 2002 (March), and sees renewed sales growth in fiscal 2003, along with accelerated EPS growth in both years vs. a dramatic fiscal 2001 year over year EPS decline.

She sees upside potential to Tommy's women's and men's wholesale businesses. Kloppenberg sees $1.38 fiscal 2001 EPS and $1.53 fiscal 2002 EPS. She thinks Tommy's valuation is attractive, and has set a $22 12-month target.

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