Sterne Agee Has Neutral On Movado

Sterne Agee is out with a research report on Movado MOV and it has a Neutral rating on shares. In a note to clients, Sterne Agee writes, "While we have been gaining increasing confidence that certain product strategies are taking hold and are encouraged by normalized replenishment patterns (which seem to be holding steady despite recent macro turmoil) and what seems to be a strong watch cycle in general, we remain cautious near-term given what seems to be considerable gross margin pressure in the 2H. We note, however, that mgt. has been doing an admiral job controlling expenses and that the co's balance sheet remains quite strong, with $129m in cash (or $5.11 per share) at the end of Q2 and no debt." Shares of MOV are up $1.56 to $15.32, a gain of 11.3%.