Hermès: Bryan Garnier a buyer before trading update.
(CercleFinance.com) - Bryan Garnier reiterates its "buy" rating and fair value of 445 euros on the Hermès International stock, which it considers "the group as the most resilient in our luxury sample.
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Looking ahead to the H1 trading update, scheduled for 22 July, the broker expects sales growth of 10%, suggesting a slight slowdown in Q2 (+9%) after a strong Q1 (+11.2%).
"This slowdown can be mainly explained by leather goods activity after an exceptional and not extrapolated Q1 (+15%)," the broker says in its report.
Bryan Garnier also points out that at present the average valuation of most luxury groups suggests a premium of 25% relative to their historical averages, whereas that of Hermes is only 7%.
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.
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Looking ahead to the H1 trading update, scheduled for 22 July, the broker expects sales growth of 10%, suggesting a slight slowdown in Q2 (+9%) after a strong Q1 (+11.2%).
"This slowdown can be mainly explained by leather goods activity after an exceptional and not extrapolated Q1 (+15%)," the broker says in its report.
Bryan Garnier also points out that at present the average valuation of most luxury groups suggests a premium of 25% relative to their historical averages, whereas that of Hermes is only 7%.
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.