H&M: RBC Capital Markets maintains 'overweight' rating.
(CercleFinance.com) - RBC Capital Markets maintained on Wednesday its "outperform" rating on H&M with a price target of 250 Swedish kronor, expecting sales and gross margin trends to improve next year.
The brokerage firm says online should be the main driver of sales now, with new formats to boost growth longer term.
"H&M is now more geographically diverse and less reliant on any one market as in the past," RBC said.
The broker points out that H&M has become more of a multi-brand operator in recent years and thinks the group's other formats can add to sales growth longer term.
RBC also believes the shares' valuation remains undemanding versus global peers.
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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 brokerage firm says online should be the main driver of sales now, with new formats to boost growth longer term.
"H&M is now more geographically diverse and less reliant on any one market as in the past," RBC said.
The broker points out that H&M has become more of a multi-brand operator in recent years and thinks the group's other formats can add to sales growth longer term.
RBC also believes the shares' valuation remains undemanding versus global peers.
Copyright (c) 2017 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.