Hermès: growth in sight, Oddo ups forecast
(CercleFinance.com) - Oddo reviews its forecasts for Hermès and expects “marked positive growth both in the 3rd and 4th quarters”, in comparison with Q3 and Q4 2019.
Although it was counting on a fall of 8% and 4% respectively in the 3rd and 4th quarters, the analyst now anticipates a rise of 1% and 4%.
As a result, the “group should return, from the 2nd quarter, to a global activity level close to that of 2019”, says Oddo. Margins should however remain “well below the 33.2% observed in the 2nd quarter of 2019 and will probably not cross the 30% mark”.
The broker is expecting an 11% fall in organic revenues in 2020, which corresponds to a 5% rise in its estimates.
In this context, Oddo maintains its 'neutral' recommendation but reviews its target price upwards, to 723 euros compared to 713 euros previously.
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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.
Although it was counting on a fall of 8% and 4% respectively in the 3rd and 4th quarters, the analyst now anticipates a rise of 1% and 4%.
As a result, the “group should return, from the 2nd quarter, to a global activity level close to that of 2019”, says Oddo. Margins should however remain “well below the 33.2% observed in the 2nd quarter of 2019 and will probably not cross the 30% mark”.
The broker is expecting an 11% fall in organic revenues in 2020, which corresponds to a 5% rise in its estimates.
In this context, Oddo maintains its 'neutral' recommendation but reviews its target price upwards, to 723 euros compared to 713 euros previously.
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.