H&M: UBS targets improved sales in Q4

(CercleFinance.com) - The analyst believes that the 4th quarter will probably be better for margins than for sales.
UBS confirms its Neutral recommendation on the stock, with an unchanged target price of SEK 187.

' H&M is performing well in terms of inventories and costs, and the fourth quarter should see strong margin growth thanks to favorable external factors. Weak sales trends are holding back our recommendation', says UBS.

'Our focus this quarter was on profitability and inventory efficiency, which helped generate strong cash flow and drive earnings development', says CEO Helena Helmersson.

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