Hermès: Oddo BHF lowers its target price

(CercleFinance.com) - Oddo BHF confirms its neutral recommendation on the share, but lowers its target price to E2,164 (from E2,195).


'The Group's comments confirm that Greater China remained difficult in Q3, with continuing unfavorable trends for the most accessible products', says the analyst.

The analyst consequently lowers his forecast from +5% to +1%. Excluding Greater China, we understand that business growth has more or less maintained a good pace, and we are keeping our overall growth forecasts unchanged at cc for Europe (+12%), Japan (+19%) and the Americas (+12%). Our growth forecast for Q3 is down from +11.3% to +9.5%'.

We have lowered our operating margin forecast for the 2nd half of the year from 38.4% to 37.5%, i.e. a full-year margin now expected at 39.8% versus 40.2% previously, and a revision of -2% for EBIT 2024' indicates Oddo BHF.

'The decrease is of the same magnitude for our EBIT 2025 forecast, which reflects a reduction in sales growth to +9.6% vs. 10.5% previously, and an EBIT margin expected at 40.0% vs. 40.2% previously'.

'We have no doubts about the franchise's ability to maintain comfortable growth despite the pronounced breakdown in Asia, and therefore to continue to outperform the industry in this respect' adds Oddo BHF in its note of the day.

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