Swatch: Oddo cuts target price
(CercleFinance.com) - Oddo BHF has reinstated its "reduce" rating on the share of Swatch Group, cutting its corresponding target price from 220 Swiss francs to 168 Swiss francs, reflecting both more conservative market parameters and the impact of weaker long-term forecasts.
After Swatch's press conference to present its annual results, the broker notes that China is improving, although this is not the case overall in the near short term, with the analyst warning that the first half of 2020 will necessarily be very bad.
The broker therefore integrates its new sector scenario in its forecasts for the Swiss watchmaking group, and estimates that 2020 profit should fall by two thirds year-on-year.
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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.
After Swatch's press conference to present its annual results, the broker notes that China is improving, although this is not the case overall in the near short term, with the analyst warning that the first half of 2020 will necessarily be very bad.
The broker therefore integrates its new sector scenario in its forecasts for the Swiss watchmaking group, and estimates that 2020 profit should fall by two thirds year-on-year.
Copyright (c) 2020 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.