H&M: share price rises, Deutsche Bank upgrades to buy

(CercleFinance.com) - H&M climbed on the Stockholm Stock Exchange on Wednesday after Deutsche Bank upgraded its recommendation on the Swedish clothing giant from 'sell' to 'buy'.


The ready-to-wear group's share price is currently up 2.2%, making it the third-biggest gainer on the OMXS30 index, which is up 0.6% at the same time.

Deutsche Bank, whose price target has been raised from 165 to 200 kronor, believes that the market has not fully taken into account H&M's structural growth potential.

While the research firm acknowledges that the trend towards normalization of sales and margins has been welcomed by the financial community, DB is counting on a clear improvement in results thanks to collections that are more in tune with the times, more efficient in-store sourcing and better inventory and cost management.

From its point of view, the correction in the share price that followed the presentation of the latest results therefore represents a good opportunity to take another look at the dossier.

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