Hermes: Oddo still a buyer
(CercleFinance.com) - Oddo says that sales in the global luxury goods sector are expected to have declined further in Europe in the first quarter.
However, in all other regions, the re-acceleration observed in H2 2020 (compared to H2 2019, which had been very good, it should be noted), combined with an easy comparison basis should result in robust (United States) or even spectacular (Asia and China) y/y growth, the analyst says.
At the global level, the broker believes that overall growth should easily exceed +20% in Q1. For FY 2021 its model gives a growth rate of +22% at constant exchange rates, after -11% in 2020, meaning that we are 8% above 2019, Oddo adds.
The analyst believes that the winners of the second half of 2020 will again be winners in the first quarter of 2021, which explains why he is increasing his forecast for Hermès (FY: sales +4%/+5%, EBIT +7%/+8%).
Oddo adopts an Outperform recommendation on Hermès with an increased target price raised of 1022 euros (vs. 959 euros). The revision of its estimates for Hermès enables it to raise its DCF-based target price by the same amount (+7% to 1022 euros).
The share is currently up over 2.5% at 975 euros in Paris.
Copyright (c) 2021 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.
However, in all other regions, the re-acceleration observed in H2 2020 (compared to H2 2019, which had been very good, it should be noted), combined with an easy comparison basis should result in robust (United States) or even spectacular (Asia and China) y/y growth, the analyst says.
At the global level, the broker believes that overall growth should easily exceed +20% in Q1. For FY 2021 its model gives a growth rate of +22% at constant exchange rates, after -11% in 2020, meaning that we are 8% above 2019, Oddo adds.
The analyst believes that the winners of the second half of 2020 will again be winners in the first quarter of 2021, which explains why he is increasing his forecast for Hermès (FY: sales +4%/+5%, EBIT +7%/+8%).
Oddo adopts an Outperform recommendation on Hermès with an increased target price raised of 1022 euros (vs. 959 euros). The revision of its estimates for Hermès enables it to raise its DCF-based target price by the same amount (+7% to 1022 euros).
The share is currently up over 2.5% at 975 euros in Paris.
Copyright (c) 2021 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.