Richemont: Deutsche Bank no longer a buyer.
(CercleFinance.com) - In turn, Deutsche Bank (DB) has welcomed the sales performance that the Swiss 'hard luxury' group Richemont reported yesterday morning.
However, analysts also believe that the recovery they reflect is already largely priced in. Although DB has inched up its target price 90 Swiss francs to 92 Swiss francs, it has downgraded its "buy" rating on the stock to "hold".
Indeed, according to its report, the marked rise in the upmarket jewellery and watches group (“hard luxury”) as opposed to “soft luxury” (clothing, leather goods and perfumes, for example) over the first five months of its 2017/2018 financial year is worth noting. This explains the 4% increase in analysts' EPS estimates, which have led it to raising its target price.
Indeed, “following years of weakness,” we read in the report, "the hard luxury segment is indicating that a return to growth is possible," which is also indicated by the latest trends in Swiss watch exports.
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.
However, analysts also believe that the recovery they reflect is already largely priced in. Although DB has inched up its target price 90 Swiss francs to 92 Swiss francs, it has downgraded its "buy" rating on the stock to "hold".
Indeed, according to its report, the marked rise in the upmarket jewellery and watches group (“hard luxury”) as opposed to “soft luxury” (clothing, leather goods and perfumes, for example) over the first five months of its 2017/2018 financial year is worth noting. This explains the 4% increase in analysts' EPS estimates, which have led it to raising its target price.
Indeed, “following years of weakness,” we read in the report, "the hard luxury segment is indicating that a return to growth is possible," which is also indicated by the latest trends in Swiss watch exports.
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.