H&M: HSBC downgrades stock

(CercleFinance.com) - On Wednesday HSBC downgraded H&M shares from 'buy' to 'hold', reducing its target price for them from 185 SEK to 145 SEK.


The broker deplores the lack of positive momentum likely to drive the Swedish ready-to-wear giant, whose strategy to improve its product offering may take some time to bear fruit.

In the meantime, the analyst fears that exogenous factors, such as higher logistics costs and unfavourable currency effects will put a strain on profit margins, leading him to reduce his earnings forecasts for fiscal 2025 and 2026 by 11% to 16%.


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