Hermes: Oddo raises target price
(CercleFinance.com) - Oddo believes that Hermès' annual results are nothing less than impressive and fairly closely resemble those of LVMH Fashion and Leather Goods.
They include organic sales growth of over 15% over Q4 (15.6% for Hermès; growth reached +18% at LVMH M&M, while Oddo was expecting +9%).
Following this publication, Oddo confirms its neutral rating on the stock, while increasing its corresponding target price to 956 euros (from 865 euros).
Underlying annual EBIT therefore reached 1981 million (margin of 31%), beating the broker's forecast - close to the consensus, the analyst says.
Obviously it is Asia-Pacific excluding Japan that is performing best in Q4 at +47% in comparable currencies and this is primarily the result of probably exceptional growth in China, however, the group says that it is also registering strong growth in Australia, Korea and Thailand and even +16% in Japan, Oddo adds.
The analyst also says that, in terms of business lines, it is clearly the performance in leather goods that impresses - growth of 18% at constant exchange rates, tableware and jewellery division (the undisputed star of the past financial year) grew by 56%, while watchmaking posted +28%.
As far as leather goods are concerned, the group is resuming its traditional rate of production growth: in 2021 it is aiming for a return to annual growth of around 7%.
The share is currently down over 1% in Paris.
Copyright (c) 2021 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.
They include organic sales growth of over 15% over Q4 (15.6% for Hermès; growth reached +18% at LVMH M&M, while Oddo was expecting +9%).
Following this publication, Oddo confirms its neutral rating on the stock, while increasing its corresponding target price to 956 euros (from 865 euros).
Underlying annual EBIT therefore reached 1981 million (margin of 31%), beating the broker's forecast - close to the consensus, the analyst says.
Obviously it is Asia-Pacific excluding Japan that is performing best in Q4 at +47% in comparable currencies and this is primarily the result of probably exceptional growth in China, however, the group says that it is also registering strong growth in Australia, Korea and Thailand and even +16% in Japan, Oddo adds.
The analyst also says that, in terms of business lines, it is clearly the performance in leather goods that impresses - growth of 18% at constant exchange rates, tableware and jewellery division (the undisputed star of the past financial year) grew by 56%, while watchmaking posted +28%.
As far as leather goods are concerned, the group is resuming its traditional rate of production growth: in 2021 it is aiming for a return to annual growth of around 7%.
The share is currently down over 1% in Paris.
Copyright (c) 2021 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.