H&M: Invest Securities still a seller, but raises TP
(CercleFinance.com) - Invest Securities reiterates its sell rating on the clothing chain H&M share, given its significant downside potential (-16%) relative to its target price, which it has increased from 130 Swedish kronor to 157 Swedish kronor (current price: 187 Swedish kronor).
The share's sharp 28% increase in November, in the wake of vaccine announcements, seems excessive given the fundamentals, the analyst says, warning that the tightening of health restrictions will weigh on the fourth quarter.
The broker has cut its 2019-20 EPS estimates to -0.23 Swedish kronor, although has raised its 2020-21 and 2021-22 EPS estimates by +7.4% and +10.6%, to reflect what it says is a clearer catch-up effect and the prospect of normalization, resulting in fewer special offers and price reductions.
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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 share's sharp 28% increase in November, in the wake of vaccine announcements, seems excessive given the fundamentals, the analyst says, warning that the tightening of health restrictions will weigh on the fourth quarter.
The broker has cut its 2019-20 EPS estimates to -0.23 Swedish kronor, although has raised its 2020-21 and 2021-22 EPS estimates by +7.4% and +10.6%, to reflect what it says is a clearer catch-up effect and the prospect of normalization, resulting in fewer special offers and price reductions.
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.