Richemont: Stifel still buying after record results
(CercleFinance.com) - Stifel believes that Richemont ended the year on a positive note, with FY 2023 results comfortably ahead of expectations, with strong organic growth in jewellery compared to the sector.
Following this announcement, the broker confirms its buy rating on the stock with a target pice of 160 Swiss francs.
Organic growth for the Jewellery Houses accelerated to +27% in Q4 2023 (vs. +13% for the consensus) and organic growth for the group accelerated to +22% in Q4 2023 (vs. +13% for the consensus).
"By region, the beat was driven by a stronger-than-expected rebound in Asia Pacific (+25% in 4Q23 vs. -7% in 9M23) led by the Chinese cluster recovery and stronger-than-expected growth momentum in Americas (+12% in 4Q23 vs. +3% in 3Q23). while Europe (+21%), and Japan (+36%) were solid overall," Stifel points out.
"FY23 operating profit of E5.0bn came in 3.5% ahead of consensus, with both the gross margin (68.7%) and operating margin (25.2%) ahead of expectations," the analyst adds.
Copyright (c) 2023 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.
Following this announcement, the broker confirms its buy rating on the stock with a target pice of 160 Swiss francs.
Organic growth for the Jewellery Houses accelerated to +27% in Q4 2023 (vs. +13% for the consensus) and organic growth for the group accelerated to +22% in Q4 2023 (vs. +13% for the consensus).
"By region, the beat was driven by a stronger-than-expected rebound in Asia Pacific (+25% in 4Q23 vs. -7% in 9M23) led by the Chinese cluster recovery and stronger-than-expected growth momentum in Americas (+12% in 4Q23 vs. +3% in 3Q23). while Europe (+21%), and Japan (+36%) were solid overall," Stifel points out.
"FY23 operating profit of E5.0bn came in 3.5% ahead of consensus, with both the gross margin (68.7%) and operating margin (25.2%) ahead of expectations," the analyst adds.
Copyright (c) 2023 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.