Richemont: Oddo neutral, adjusts target price

(CercleFinance.com) - Richemont's Q1 sales (FY to end-March 2023) reached 5,264 million euros, up 12% and up 20% on a reported basis (currency effect +8%).


Oddo expected lower sales of 5,144 million euros, up 10% y/y at constant exchange rates.

Analysts therefore say that they pleasantly surprised (+2% difference compared to their forecast). Jewellery houses reported 3,015 million euros, i.e. +12% y-o-y at constant exchange rates (analysts expected 2,949 million euros, +10%), while specialist watchmakers revenues reached 1,002 million euros, i.e. up 10% (analysts expected slightly less at 979 million euros, +8%).

As expected, growth remained very strong in Europe (local demand + return of long-distance tourism), while it remained robust in the US and stood out in Japan.

Oddo has slightly increased its sales/EBIT forecast to take account of exchange rates (+2%), although ut its organic assumptions remain unchanged.

Oddo has trimmed its target price for the share to 118 Swiss francs (from 125 Swiss francs) to reflect a higher risk and confirms its Neutral rating on the stock.


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