Hermes: Oddo confirms rating after results
(CercleFinance.com) - Oddo believes that Hermès' H1 figures are ultimately pretty much in line with expectations, despite a visible momentum for an improvement in the industry in the last few weeks of June.
Following this publication, Oddo confirms its neutral rating on the share with a target price of 580 euros.
The broker says that the group has only just outperformed its rather conservative expectations: Q2 sales were down 41.5% organically, whereas Oddo expected -45%, while its EBIT margin was 21.5% in H1, compared to 20.5%, i.e. just 1% off (535 million euros compared to the 500 million euros it was expecting), it said.
This slight outperformance is based on remarkable performances in the Asia-Pacific region, driven by China, Taiwan and Korea (down only 9%), the analyst adds.
The Hermes share is down just over 0.5% towards midday on Friday.
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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.
Following this publication, Oddo confirms its neutral rating on the share with a target price of 580 euros.
The broker says that the group has only just outperformed its rather conservative expectations: Q2 sales were down 41.5% organically, whereas Oddo expected -45%, while its EBIT margin was 21.5% in H1, compared to 20.5%, i.e. just 1% off (535 million euros compared to the 500 million euros it was expecting), it said.
This slight outperformance is based on remarkable performances in the Asia-Pacific region, driven by China, Taiwan and Korea (down only 9%), the analyst adds.
The Hermes share is down just over 0.5% towards midday on Friday.
Copyright (c) 2020 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.