Richemont: Oddo maintains rating and target price

(CercleFinance.com) - Richemont's Jewellery Houses business - the division that represents most of its profits - posted a 41% drop in Q1 sales (corresponding to calendar Q2) at constant exchange rates, at 1,083 million euros.


Oddo says that this is close to its estimate of -40% and should be respectable performance compared to all the sector's publications for this quarter, which, it should be remembered, was marked by the closure of outlets in most areas most of the time.

Analysts point out that sales in mainland China for this division rose by 68%.

They are therefore adjusting their 2021 EPS guidance by -10%, with a modest decline for 2022 and 2023, having slightly reduced sales expectations for jewellery and watches for the next quarter, in line with a sector scenario for calendar Q3 now expecting a decline of at least 10% y/y in overall sales.

Oddo confirms its Reduce rating on the share, along with a target price of 42 Swiss francs (31% downside potential).



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