Swatch Group: RBC Capital Markets ups target price.
(CercleFinance.com) - RBC Capital Markets has raised its target price on Switzerland's Swatch Group to 410 Swiss francs from 400 Swiss francs, betting on accelerating sales momentum in 2017-2018, especially for the group's flagship watch brand, Omega.
While Swatch does not disclose figures by brand, the brokerage firm reminds, it estimates that Omega sold 670,000 watches and generated revenues of over two billion Swiss francs last year.
In 2017, the prestige brand should account for nearly half of group EBIT, it adds.
"Omega seems to be finally stepping up their game on social media to better engage with millennials," RBC justifies, maintaining its "outperform" rating on Swatch shares.
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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.
While Swatch does not disclose figures by brand, the brokerage firm reminds, it estimates that Omega sold 670,000 watches and generated revenues of over two billion Swiss francs last year.
In 2017, the prestige brand should account for nearly half of group EBIT, it adds.
"Omega seems to be finally stepping up their game on social media to better engage with millennials," RBC justifies, maintaining its "outperform" rating on Swatch shares.
Copyright (c) 2017 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.