Richemont: Credit Suisse raises target price
(CercleFinance.com) - Credit Suisse has raised its target price for the Richemont share from 54 Swiss francs to 57 Swiss francs (7% downside potential), although maintains its "Underperform" rating.
"We raise our FY21-22e EPS forecasts by 3-4% due to more constructive near-term demand assumptions," the broker says.
"Our FY21e operating profit forecast of E675m remains 25% below consensus".
"We model -8% organic sales in 2Q driven by pent-up demand for Cartier iconic lines, notably in China. We assume no further improvement in 3Q at -7% against a more difficult backdrop including US elections and a lower China share of sales," Crédit Suisse adds.
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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.
"We raise our FY21-22e EPS forecasts by 3-4% due to more constructive near-term demand assumptions," the broker says.
"Our FY21e operating profit forecast of E675m remains 25% below consensus".
"We model -8% organic sales in 2Q driven by pent-up demand for Cartier iconic lines, notably in China. We assume no further improvement in 3Q at -7% against a more difficult backdrop including US elections and a lower China share of sales," Crédit Suisse adds.
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.