Swatch Group: shares rise after broker upgrade

(CercleFinance.com) - Shares in Swatch Group are up slightly in early trading on Wednesday, outperforming a downbeat Swiss market, after Berenberg upgraded its rating on the stock.


The German broker has raised its rating on the share from "sell" to "hold," with a new target price of 390 Swiss francs, up from 355 Swiss francs, after attending the Baselworld watch and jewellery trade fair.

"The second major Swiss watch event of the year painted a rosy picture for the industry in 2018, especially for the Swatch Group," it wrote in a report.

Berenberg pointed out a "significantly improved mood" at retailers, which has resulted in robust orders and expected 5-10% growth this year.

This upgrade has helped lift the stock, which has kept its head above water this morning, rising 0.1% to 411.1 Swiss francs, hence outperforming Zurich's blue-chip SMI index, which is currently down 1.2%.

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