H&M: Deutsche Bank raises TP

(CercleFinance.com) - Deutsche Bank announced on Tuesday that it had raised its target price for H&M shares from 155 SEK to 165 SEK (cp: 192 SEK, +1.
8%), while maintaining its 'sell' recommendation on the stock.

The analyst says he expects the ready-to-wear group to report 'solid' quarterly results again on 27 June.

Following this publication, the market consensus should finally incorporate the prospect of an EBIT margin communicated by the management team, he adds.

This is quite a turnaround compared with the difficult period at the start of 2023, when the forecast was initially unveiled and deemed implausible by investors, DB adds.

The broker points out that the turnaround in gross margin achieved so far by the clothing manufacturer has proved more marked than expected, which should lead to solid results given the Swedish group's current control of costs and inventories.


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