Swatch: UBS downgrades stock
(CercleFinance.com) - UBS has downgraded the Swatch stock to Sell (from Neutral), having lowered its target price to 127 Swiss francs (from 178 Swiss francs): the new target represents 17% downside potential.
"Swatch may be entering a prolonged downturn in a fragile position, which could lead to structurally lower margins unseen before. We downgrade to Sell with CHF127 price target", UBS says.
Swatch Group's H1 results showed a significant decline in sales and earnings, due to its high exposure to China. The CEO expects trends to remain difficult for the rest of 2024, UBS says.
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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.
"Swatch may be entering a prolonged downturn in a fragile position, which could lead to structurally lower margins unseen before. We downgrade to Sell with CHF127 price target", UBS says.
Swatch Group's H1 results showed a significant decline in sales and earnings, due to its high exposure to China. The CEO expects trends to remain difficult for the rest of 2024, UBS says.
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.