Richemont: Oddo BHF remains positive, but cuts TP
(CercleFinance.com) - Oddo BHF reiterates its 'outperform' rating on Richemont shares, despite lowering its target price from 144 CHF to 136 CHF, following H1 results that clearly mark a disappointment on margins due to a more unfavourable sector cycle.
The sharp downturn in China clearly impacted the group's overall margins over the half-year, as it did not halt its investments to promote and distribute its brands, even if it means moderating them later if the difficulties persist, the analyst adds.
A resetting of its margin assumptions has led Oddo BHF to reduce its earnings estimates (-5/-6% on annual EBIT forecasts) for the Swiss luxury group, but it reaffirms its confidence in the strength of its jewelry positions.
The Cartier Van Cleef group (to which we must add Buccellati and, more recently, Vhernier) is maintaining solid positive growth despite double-digit declines in Asia, and its long-term outlook remains favorable, it explains.
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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.
The sharp downturn in China clearly impacted the group's overall margins over the half-year, as it did not halt its investments to promote and distribute its brands, even if it means moderating them later if the difficulties persist, the analyst adds.
A resetting of its margin assumptions has led Oddo BHF to reduce its earnings estimates (-5/-6% on annual EBIT forecasts) for the Swiss luxury group, but it reaffirms its confidence in the strength of its jewelry positions.
The Cartier Van Cleef group (to which we must add Buccellati and, more recently, Vhernier) is maintaining solid positive growth despite double-digit declines in Asia, and its long-term outlook remains favorable, it explains.
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.