H&M: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse reiterates its "underperform" rating on the H&M (Hennes & Mauritz) share and has reduced its corresponding target price from 180 Swedish kronor to 175 Swedish kronor, before the Scandinavian clothing chain's trading update on its Q1 sales on 16 March.
With sales expected to be hit by the coronavirus in China, the rest of Asia and now in Europe, the broker has cut local currency sales forecasts for Q1 to 4% and to 2% for Q2.
"This leads to a 2% cut to FY year EPS, which are now 6% below consensus (Infront), with 1Q EBIT 25% below consensus and 2Q 8% lower," it adds.
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.
With sales expected to be hit by the coronavirus in China, the rest of Asia and now in Europe, the broker has cut local currency sales forecasts for Q1 to 4% and to 2% for Q2.
"This leads to a 2% cut to FY year EPS, which are now 6% below consensus (Infront), with 1Q EBIT 25% below consensus and 2Q 8% lower," it adds.
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.