Richemont : Goldman Sachs no longer a buyer

(CercleFinance.com) - On Friday, Goldman Sachs cut its recommendation on Richemont shares from 'buy' to 'neutral', with a price target lowered from 132 to 128 Swiss francs.


In a research note, the analyst explains that the luxury group is not immune to the current economic difficulties and considers the market consensus still too high, even if analyst forecasts are now tending to be revised downwards.

While he appreciates the quality of the company's jewelry activities (which alone generate 90% of operating income) from a long-term perspective, the intermediary predicts a difficult six months ahead for the luxury goods sector as a whole.

As shown by LVMH's disappointing results published earlier this week, Chinese consumers are tending to curb their spending more sharply than expected, notes Goldman in its note.

Richemont is due to publish results for the first half of its 2024/2025 fiscal year ending September on November 8.

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