Swatch's lawsuit, which went public in a U.S. District Court in Manhattan on Monday, claims that Target's "Zebra" and "Multi-Color" watches infringe on Swatch's designs. The suit states that Target's quality is "inferior" to Swatch's and that their ongoing sale would likely confuse shoppers and ultimately hurt Swatch's sales. Furthermore, Swatch claims that it informed Target of the issue, but the latter continued the sales anyway.
"By adopting the Zebra Watch trade dress and the Multi-Color Watch trade dress, defendants are unfairly competing" with Swatch, the suit said, according to Reuters.
Despite this news, Target's stock was ticking upward 0.21% to $61.29 at 10:16 a.m. on Tuesday.
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TheStreet Ratings team rates TARGET CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TARGET CORP (TGT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."