Richemont: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF believes that growth in Q3 was mfairly robust at +8%, with a double-digit increase for Maisons Joaillères.
The analyst therefore confirms his Outperform rating on the stock, raising his price target to 135 CHF (from 130 CHF).

Q3 group sales came to E5,593m, i.e. +4% y-o-y and +8% y-o-y cc (Q2 was +5%). Analysts were expecting overall growth of +7.2% in Q3 (sales forecast at E5,554m), while the Visible Alpha consensus was c.+6%, with sales estimated at E5,493m, the broker says. The publication therefore shows a positive surprise of +1%/+2%.

By division, Maisons Joaillères came out at +12% y-o-y LFL for Q3 to E3,952m, after +9% in Q2 (analysts were expecting +9%), Horlogers Spécialisés at +3% to E939m, after -4% in Q2 (analysts were expecting +3%).

The broker has raised its growth forecast for Q4 from +0% to +2% y-o-y cc with Jewelry Houses at +3% versus +0%, which leads the analyst to raise his March 2024 full-year forecast by +1% for both sales and EBIT.

Our forecast scenario for subsequent years changes only marginally. Growth expected at +6.0% cc for March 2025 (Maisons Joaillères at +7%) and +6.6% for March 2026 (Maisons Joaillères at +7.5%). Group EBIT margin expected at 23.8% for March 2025 compared with the March 2024 forecast raised from 23.3% to 23.4%, March 2026 margin expected at 24.8%, Oddo BHF adds.


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