Hermès: Oddo BHF raises target price
(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Hermès shares, with a target price raised from E2164 to E2315 to reflect slightly more favourable market parameters and the effect of the change of financial year in the DCF valuation.
The analyst reports that the parameters taken into account in his valuation of the stock reflect a favorable assessment of the long-term outlook (10-year average annual growth at 10%, long-term EBIT margin at 40%, perpetual growth at 4.5%).
However, given current share prices, the stock does not appear to have significant upside potential, reflecting already very positive investor sentiment, it adds.
Although Hermès is not giving any precise indications at this stage, the company has indicated that it intends to maintain a high rate of recruitment and investment in 2025 (2025 Capex possibly close to the E1bn forecast for 2024).
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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 analyst reports that the parameters taken into account in his valuation of the stock reflect a favorable assessment of the long-term outlook (10-year average annual growth at 10%, long-term EBIT margin at 40%, perpetual growth at 4.5%).
However, given current share prices, the stock does not appear to have significant upside potential, reflecting already very positive investor sentiment, it adds.
Although Hermès is not giving any precise indications at this stage, the company has indicated that it intends to maintain a high rate of recruitment and investment in 2025 (2025 Capex possibly close to the E1bn forecast for 2024).
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.