Swatch: Invest Securities still a buyer, but cuts target
(CercleFinance.com) - Parisian broker Invest Securities has confirmed its buy rating on the share of the Swiss watch group Swatch, saying that it still under-appreciated, despite disappointing results.
Although the broker has cut its corresponding target price from 375 Swiss francs to 351 Swiss francs, this still suggests upside potential of close to 20%.
We knew that Swatch was the most exposed Swiss international value to the Greater China market and, as such, is very sensitive to the risks of a trade war. However, we were less aware that the group would inherently disappoint when it announced a fall in its H2 2018 results, which would totally reverse the very encouraging trend seen over the first half, the broker says in its research note.
However, Invest Securities still hails the Swiss watch industry leader for what it says is a unique and innovative integrated model with a remarkably balanced brand breakdown, coupled with the fact that it is free from all financial constraints. As a result, Swatch is far from being able to capitalize on a competitiveness advantage that has however been proven.
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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.
Although the broker has cut its corresponding target price from 375 Swiss francs to 351 Swiss francs, this still suggests upside potential of close to 20%.
We knew that Swatch was the most exposed Swiss international value to the Greater China market and, as such, is very sensitive to the risks of a trade war. However, we were less aware that the group would inherently disappoint when it announced a fall in its H2 2018 results, which would totally reverse the very encouraging trend seen over the first half, the broker says in its research note.
However, Invest Securities still hails the Swiss watch industry leader for what it says is a unique and innovative integrated model with a remarkably balanced brand breakdown, coupled with the fact that it is free from all financial constraints. As a result, Swatch is far from being able to capitalize on a competitiveness advantage that has however been proven.
Copyright (c) 2019 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.