Richemont: Oddo raises target price

(CercleFinance.com) - Oddo has said that Richemont's sales are 5% above the consensus, driven by sales for its Jewellery division, this time posting double-digit growth of 14%.


However, following this announcement, Oddo confirms its "Reduce" rating on the stock, while raising its target price to 68 Swiss francs (from 64 Swiss francs - current price: pretty flat at 86 Swiss francs).

We are well above the consensus, which expected growth to pretty much in line with fiscal Q2, the analyst said.

Jewellery was the star category over the end-of-year festivities, particularly in Europe (as well as Asia and the Middle East) where the Cartier brand is clearly established, Oddo adds.

The analyst believes that the restrictions on shop openings in Europe will be at least as bad as in Q4, and we are not immune to more visible closures elsewhere (USA, Asia). As such, conditions for H1 as a whole remain uncertain.


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