Hermès: Oddo BHF trims target price
(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Hermès International shares, trimming its target price for them from E1967 to E1953.
The analyst says that Hermès' growth should remain strong in Q3, with sales expected to rise by 11% to 13% at constant exchange rates. However, its high valuation reduces the share's defensive appeal.
Oddo BHF has moderately lowered its growth forecast for Q4 from 12.5% to 11.5%, thus remaining well below the most recent consensus (Visible Alpha forecasts just over 15%).
Oddo BHF is also lowering its FY expectations, with growth of +10.6%, compared with 11.8% in the previous estimate. The analyst has also reduced his EBIT forecasts for 2024 and 2025 by 1%.
Analysts say that they have no doubts about the franchise's intrinsic qualities, although still believe that the stock's current relative valuation in the sector tends to somewhat overplay its resilience in a slowdown phase.
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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 analyst says that Hermès' growth should remain strong in Q3, with sales expected to rise by 11% to 13% at constant exchange rates. However, its high valuation reduces the share's defensive appeal.
Oddo BHF has moderately lowered its growth forecast for Q4 from 12.5% to 11.5%, thus remaining well below the most recent consensus (Visible Alpha forecasts just over 15%).
Oddo BHF is also lowering its FY expectations, with growth of +10.6%, compared with 11.8% in the previous estimate. The analyst has also reduced his EBIT forecasts for 2024 and 2025 by 1%.
Analysts say that they have no doubts about the franchise's intrinsic qualities, although still believe that the stock's current relative valuation in the sector tends to somewhat overplay its resilience in a slowdown phase.
Copyright (c) 2023 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.