Richemont : Stifel trims target price

(CercleFinance.com) - Stifel maintains its Buy rating on Richemont shares, with a target price lowered from 160 CHF to 158 CHF.


The analyst believes that Richemont remains a "relatively successful" player in a difficult sector, with the 15% decline in business in China offset by the US and Europe.

The Jewelry Houses reassured us with resilient growth of +4% in Q1 2025.

With more favorable comparison bases ahead, we expect growth to improve further in Q2 2025 despite persistent challenges in China in H2 2024, Stifel says.

Nevertheless, sales and margins in the 'Specialist Watchmakers' division are likely to remain under significant pressure in H1 2025, given the group's overexposure to China.

Against this backdrop, the broker reduces its 2025-26E operating profit forecast by around 1%.


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