Hermès: UBS hails organic growth
(CercleFinance.com) - UBS welcomes the quarterly sales unveiled by Hermès International, one of the three luxury goods groups in the CAC 40.
The broker has confirmed its buy rating on the stock, along with its 12-month target price of 690 euros.
In Q2, the group's organic growth reached 12.3% while UBS was expecting just 10.7%. This was again driven by the Leather Goods - Saddlery division (+12.2%, against +11% expected by the consensus). Its Clothing and accessories division also made a strong contribution (+16.9%).
While management estimates that the group's operating margin over H1 2019 will be slightly lower than that of H1 2018 (34.5%), following its traditional caution, UBS expects this to reach 35%.
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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.
The broker has confirmed its buy rating on the stock, along with its 12-month target price of 690 euros.
In Q2, the group's organic growth reached 12.3% while UBS was expecting just 10.7%. This was again driven by the Leather Goods - Saddlery division (+12.2%, against +11% expected by the consensus). Its Clothing and accessories division also made a strong contribution (+16.9%).
While management estimates that the group's operating margin over H1 2019 will be slightly lower than that of H1 2018 (34.5%), following its traditional caution, UBS expects this to reach 35%.
Copyright (c) 2019 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.