H&M: Credit Suisse maintains 'underperform' rating
(CercleFinance.com) - Credit Suisse reinstates its 'underperform' rating on H&M shares, while increasing its corresponding target price to 160 Swedish kronor (from 155 Swedish kronor), after adjusting its outlook for the group after its quarterly trading update.
"For all of the undoubted progress of the brand and the platform under the new management team, channel shift remains a significant obstacle to margin recovery", the broker says.
According to Credit Suisse, the Scandinavian ready-to-wear chain's current valuation of 22x expected FY2023 EPS is "now warranted by modest medium term growth rates".
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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.
"For all of the undoubted progress of the brand and the platform under the new management team, channel shift remains a significant obstacle to margin recovery", the broker says.
According to Credit Suisse, the Scandinavian ready-to-wear chain's current valuation of 22x expected FY2023 EPS is "now warranted by modest medium term growth rates".
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.