Richemont: RBC still a buyer, but cuts target price
(CercleFinance.com) - On Friday Royal Bank of Canada reduced its target price for Richemont shares from 148 Swiss francs to 120 Swiss francs, while maintaining its "outperform" opinion on the stock.
In a report, the Canadian bank said that the market's negative reaction to the Swiss conglomerate's recent annual results was "excessive", given the exceptional nature of costs that have plagued its accounts.
RBC said that Richemont's execution has been flawless from an operational viewpoint, posting revenue growth that remains one of the strongest in the industry (alongside Louis Vuitton and Hermès).
Analysts say that they are confident in Richemont's ability to maintain an adjusted operating margin of 19% over FY 2022/23.
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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.
In a report, the Canadian bank said that the market's negative reaction to the Swiss conglomerate's recent annual results was "excessive", given the exceptional nature of costs that have plagued its accounts.
RBC said that Richemont's execution has been flawless from an operational viewpoint, posting revenue growth that remains one of the strongest in the industry (alongside Louis Vuitton and Hermès).
Analysts say that they are confident in Richemont's ability to maintain an adjusted operating margin of 19% over FY 2022/23.
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.