Long/short equity, value, special situations, growth

Bullish On Tumi: Take-Off In 2014 With 30% Upside Potential

Tumi (NYSE:TUMI) is a growth stock in disguise. It generated strong revenue and earnings growth since its 2012 IPO, but the stock price has been trading sideways as the company needed time to grow into the post-IPO valuation. In 2014, I expect Tumi's stock price to finally move up and out of the range and reach $30 per share, which represents 30% upside. Tumi is well positioned for continued EPS growth in the ~20% range because of more store openings, new product innovation and an e-commerce upgrade. However, the overhang from the private equity firm that still controls a large stake could create near-term headwinds. I will analyze the 30% upside potential for Tumi in 2014 as well...

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