Hermès: Aurel BGC still a seller after trading update.
(CercleFinance.com) - In a comprehensive study issued on Wednesday, Aurel BGC has reinstated its "sell" rating on Hermès, along with its target price of 360 euros.
The broker says that there is no crisis in the Luxury sector. Although Hermes is not as fast as Gucci (Kering) at present, the group reported a very comfortable double-digit increase in Q3 revenues. At constant exchange rates, growth reached 10.2%, the broker summarised.
However, this solid publication is not changing the broker's stance on the share. Hermes continues to outperform the luxury market, although its dominance is much less isolated than in the past, as evidenced by the impressive performance posted by LV and Gucci since the beginning of the year (respectively +14% and +46%, excluding FX factors at the end of September, Aurel BGC explains.
Aurel BGC adds that in its opinion, the Hermès share price already fully reflects the group's unique fundamentals (unparalleled perception/desirability of its brand, excellent margins and ROCE), while its status as a safe haven may be less sought after in better market conditions.
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.
The broker says that there is no crisis in the Luxury sector. Although Hermes is not as fast as Gucci (Kering) at present, the group reported a very comfortable double-digit increase in Q3 revenues. At constant exchange rates, growth reached 10.2%, the broker summarised.
However, this solid publication is not changing the broker's stance on the share. Hermes continues to outperform the luxury market, although its dominance is much less isolated than in the past, as evidenced by the impressive performance posted by LV and Gucci since the beginning of the year (respectively +14% and +46%, excluding FX factors at the end of September, Aurel BGC explains.
Aurel BGC adds that in its opinion, the Hermès share price already fully reflects the group's unique fundamentals (unparalleled perception/desirability of its brand, excellent margins and ROCE), while its status as a safe haven may be less sought after in better market conditions.
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.