H&M: Berenberg now says 'sell'
(CercleFinance.com) - On Tuesday Berenberg downgraded H&M shares from "hold" to "sell", slashing its target price for them by over a half, from 190 Swedish kronor to 85 Swedish kronor.
In a study of the European consumer goods sector, the analyst believes that the Swedish clothing giant is the most threatened by the recession that is beginning to bite.
"It is highly exposed to markets where spending will weaken, with limited relief from profitable growth markets, in our view (exiting Russia and doubts on China recovery)," analysts said.
"We do not think H&M is a price leader in value fashion, which is now fiercely competitive, so we do not think it will be a beneficiary of trading down," Berenberg added.
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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.
In a study of the European consumer goods sector, the analyst believes that the Swedish clothing giant is the most threatened by the recession that is beginning to bite.
"It is highly exposed to markets where spending will weaken, with limited relief from profitable growth markets, in our view (exiting Russia and doubts on China recovery)," analysts said.
"We do not think H&M is a price leader in value fashion, which is now fiercely competitive, so we do not think it will be a beneficiary of trading down," Berenberg added.
Copyright (c) 2022 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.