Richemont: Jefferies reduces target price
(CercleFinance.com) - Jefferies reiterates its "buy" rating on Richemont shares, having reduced its target price for them from 140 Swiss francs to 125 Swiss francs, re-examining the case after the luxury group's "disappointing" publication for the past financial year and the resulting sharp drop in its share price.
"Given a number of one-offs the miss is less than first feared but evolving market conditions are likely to result in more short-term challenges," the broker warns.
In analysts' opinion, the core jewellery business remains very attractive, while YNAP remains an unwelcome distraction. "We continue to see positive momentum but lower mgs and adapt target multiples to current dynamics," it says.
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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.
"Given a number of one-offs the miss is less than first feared but evolving market conditions are likely to result in more short-term challenges," the broker warns.
In analysts' opinion, the core jewellery business remains very attractive, while YNAP remains an unwelcome distraction. "We continue to see positive momentum but lower mgs and adapt target multiples to current dynamics," it says.
Copyright (c) 2022 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.