Hermes: Oddo raises target price

(CercleFinance.com) - Oddo BHF reiterates its "outperform" rating on Hermès International shares, having increased its target price for them from 1,300 euros to 1,406 euros, following the company's 2021-23 sales/EBIT forecasts, which it increased by an average of +2.
5%/+3.5% respectively.

In addition to these new forecasts, the new target price reflects slightly more optimistic growth/margins assumptions for the post-2023 period (average annual growth over 2023-30 at +7% and long-term normative margin at 36.5%) for the luxury goods group.

The analyst says that the group is well placed to develop at a sustained pace, while presenting a resilience potential that exceeds that of its peers (leather goods franchise: demand structurally exceeds supply).

The share is currently up over 2% at just under 1,360 euros.


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