Hugo Boss: Invest Securities cuts target price

(CercleFinance.com) - The analyst says that on Thursday evening the group announced Q3 sales and EBIT that were above expectations, which led management to raise its FY 2021 targets (sales up 40% at constant exchange rates and EBIT of 175 to 200 million euros).


These encouraging figures have led the broker to increase its 2021/22/23 EPS estimates by 17.6%/+7%/+6.9% and its normative margin assumption, which is now considered to be conservative (by one point), Invest Securities adds.

However, despite these very favourable factors, the broker has trimmed its target price for the share (to 50.8 euros vs 52.2 euros), with a significant increase in the risk premium applied and the risk-free rate since its last update (WACC at 7.01% vs. 6.18%), with analysts remaining neutral on the stock.

The share is currently down 1.8% at 52.2 euros.


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