Swatch: Stifel lowers its target price
(CercleFinance.com) - Stifel maintains its 'hold' recommendation on Swatch Group shares, while lowering its target price for them from 215 CHF to 195 CHF, after reducing its sales and operating profit projections for 2024 and 2025.
"Greater China experienced a sharp sales decline in excess of 30% in 1H24 and should remain a challenging market in 2H24", the broker says, while noting the implementation of cost reductions to avoid further margin erosion.
According to Stifel, "Swatch Group shares are unlikely to recover until Chinese consumption trends improve and earnings revisions stabilise".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
"Greater China experienced a sharp sales decline in excess of 30% in 1H24 and should remain a challenging market in 2H24", the broker says, while noting the implementation of cost reductions to avoid further margin erosion.
According to Stifel, "Swatch Group shares are unlikely to recover until Chinese consumption trends improve and earnings revisions stabilise".
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.