Swatch: Invest Securities cuts target price
(CercleFinance.com) - While maintaining its "neutral" rating on the Swatch share, Invest Securities has cut its corresponding target price from 250 Swiss francs to 210 Swiss francs, judging that the already poor visibility has naturally deteriorated with the pandemic and the downward revisions of earnings estimates.
After the fall of Hong Kong, the analyst wonders where Swatch will find the means to regain momentum, with it also having a greater-than-average dependence on the (tourist) flow markets - particularly for its flagship brand Omega.
While the broker has to admit that the luxury related status is no longer justified, this change does not call for the recognition of a value stock, even with a book value of close to one, as industrial risk remains, it continues.
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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 the fall of Hong Kong, the analyst wonders where Swatch will find the means to regain momentum, with it also having a greater-than-average dependence on the (tourist) flow markets - particularly for its flagship brand Omega.
While the broker has to admit that the luxury related status is no longer justified, this change does not call for the recognition of a value stock, even with a book value of close to one, as industrial risk remains, it continues.
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.