Swatch: Morgan Stanley sees threat from wearables.
(CercleFinance.com) - Morgan Stanley recommends investors stay "underweight" in Swatch shares, saying that a threat from wearables could soon re-emerge.
The brokerage firm - which has a target price of 331 Swiss francs for the shares - said an inhouse survey on the latest Apple launches indicates "surprisingly bullish demand" for the new Watch Series 3.
"With technology around wearables making further progress, we think risks to traditional watch sales could resurface in the medium term and we see Swatch as particularly exposed", the broker said.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm - which has a target price of 331 Swiss francs for the shares - said an inhouse survey on the latest Apple launches indicates "surprisingly bullish demand" for the new Watch Series 3.
"With technology around wearables making further progress, we think risks to traditional watch sales could resurface in the medium term and we see Swatch as particularly exposed", the broker said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.