Hermes: shares slightly down after downgrade
(CercleFinance.com) - Shares of Hermes International are down slightly on Tuesday after Berenberg downgraded the French luxury house from "hold" to "sell," saying that their valuation could be at risk.
"The shares of Hermes are up by about 30% year-to-date following a rally ahead of the company's inclusion in the CAC 40 index on 18 June," the German broker wrote in a research note.
"However, Hermes is trading at a historically high premium versus peers, while showing some worrying signs that its brand momentum may be slowing down," it added.
After these comments, Hermes shares were down 0.5% at 561 euros in morning trading on Euronext Paris.
Berenberg has a target price of 479 euros for the shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
"The shares of Hermes are up by about 30% year-to-date following a rally ahead of the company's inclusion in the CAC 40 index on 18 June," the German broker wrote in a research note.
"However, Hermes is trading at a historically high premium versus peers, while showing some worrying signs that its brand momentum may be slowing down," it added.
After these comments, Hermes shares were down 0.5% at 561 euros in morning trading on Euronext Paris.
Berenberg has a target price of 479 euros for the shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.