Swatch: Oddo BHF cuts target price
(CercleFinance.com) - Oddo BHF maintains its "reduce" rating on the Swatch Group share, while reducing its target price from 168 Swiss francs to 154 Swiss francs (current price : 188 Swiss francs), after cutting its post-2020 EBIT scenario by almost 10% for the Swiss watchmaker.
More fundamentally, the broker states that it remains cautious regarding the future trends of Swatch's key watchmaking segment, including intermediate ranges (Tissot/Longines/Omega), and finds its exposure to the upmarket segment too fragmented to influence the group's destiny.
The analyst adds that the increasing popularity of connected watches and a macro scenario that is not very favourable for mass discretionary consumption are, in the broker's opinion, major obstacles for the share's re-rating.
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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.
More fundamentally, the broker states that it remains cautious regarding the future trends of Swatch's key watchmaking segment, including intermediate ranges (Tissot/Longines/Omega), and finds its exposure to the upmarket segment too fragmented to influence the group's destiny.
The analyst adds that the increasing popularity of connected watches and a macro scenario that is not very favourable for mass discretionary consumption are, in the broker's opinion, major obstacles for the share's re-rating.
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.