Swatch: Oddo BHF cuts its price target
(CercleFinance.com) - Oddo BHF reiterates its 'underperform' rating on Swatch Group, with a price target reduced from 167 to 146 Swiss francs, judging that 'the expected recovery may be slow to materialize' and that 'caution remains the order of the day'.
'The persistence of very unfavorable trends in Greater China (one third of Group sales in 2023) leads us to radically revise our forecasts (nearly -25% on average on EBIT 2024-2026', explains the analyst.
According to Oddo BHF, Swatch's position remains more unfavorable than that of most other sector stocks under coverage at this stage (fragmented presence in luxury watchmaking, high exposure to China and aspirational consumption).
As for the possibility of delisting the group, mentioned in the Swiss press, he remains circumspect as to its feasibility, given the capital that the Hayek family would have to commit to the operation in the absence of outside financial partners.
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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 persistence of very unfavorable trends in Greater China (one third of Group sales in 2023) leads us to radically revise our forecasts (nearly -25% on average on EBIT 2024-2026', explains the analyst.
According to Oddo BHF, Swatch's position remains more unfavorable than that of most other sector stocks under coverage at this stage (fragmented presence in luxury watchmaking, high exposure to China and aspirational consumption).
As for the possibility of delisting the group, mentioned in the Swiss press, he remains circumspect as to its feasibility, given the capital that the Hayek family would have to commit to the operation in the absence of outside financial partners.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
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.