Hugo Boss: Stifel downgrades its recommendation

(CercleFinance.com) - Stifel downgrades Hugo Boss shares from 'buy' to 'hold', with a target price reduced from E56 to E40, after a 15% reduction in its 2024 EPS estimates, followed by a 20% cut for 2025 for the German clothing house.


The broker concedes having been 'too complacent' with the accumulation of signals of slowing sales and earnings momentum since the end of 2023. It sees the extent of its sales outperformance normalising by 2025.

"Stock looks very cheap but lacks catalysts for re-rating as things may get worse before they get better", Stifel adds. "Consensus revisions turned negative in 4Q23 and are yet to stabilise for the stock to find a floor".


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