On Tuesday, UBS increased its price target on shares of Oxford Industries (NYSE:OXM) to $106 from $105, while maintaining a Neutral rating on the stock. The firm's decision comes after Oxford Industries reported that its sales during the Holiday season and the Resort selling season to date have met internal expectations, as announced on January 8th.
The company's performance during these key selling periods has been seen as eliminating some of the potential surprise ahead of its fourth-quarter report. UBS anticipates that Oxford Industries will provide full-year 2024 earnings per share (EPS) guidance in the range of $10.20 to $10.60. This projection is expected to keep analysts' consensus EPS forecast of $10.31 stable.
UBS suggests that the market has already aligned its expectations with the company's outlook, implying that the upcoming fourth-quarter report is unlikely to significantly alter investor sentiment towards Oxford Industries. The options market is currently pricing in an approximate 6.8% movement in the stock price in response to the earnings report, which is slightly higher than the historical average move of 6.4%.
The firm's analysis indicates that the actual price volatility around the earnings announcement may be less than the 6.8% currently expected by the options market. This assessment is based on the company's recent performance and the alignment between market expectations and the company's guidance.
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