Richemont: Morgan Stanley raises target price.

(CercleFinance.com) - Morgan Stanley has raised its target price on Richemont from 84 Swiss francs to 87 Swiss francs, maintaining its "overweight" rating, saying that the owner of the Cartier brand's 2017 fiscal year was "not so bad.
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While the broker acknowledges that the group's headline growth in the fourth-quarter to end-March was "unexciting" at 4%, Morgan Stanley underlines that this masked a 15% growth in retail.

Benchmarking retail sales compared to peers, Richemont is actually in third place, behind Gucci and Louis Vuitton, the broker added.

"With favourable cyclical exposure and a self-help earnings recovery, we stay "overweight," Morgan Stanley wrote in a research report.

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