H&M: Deutsche Bank upgrades its recommendation to 'buy'.

(CercleFinance.com) - Deutsche Bank has upgraded its recommendation on the Swedish clothing giant from 'sell' to 'buy'.


Deutsche Bank, whose target price 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.

In its 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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