Richemont: stock up after a broker upgrade

(CercleFinance.com) - The Richemont stock is up 0.
7% in Zurich today, boosted by Credit Suisse, which has upgraded its rating on the stock from "underperform" to "neutral," despite cutting its target price from 89 Swiss francs to 86 Swiss francs.

After three years of underperforming the luxury goods sector and disappointing 2017/2018 results, Credit Suisse now thinks that the Richemont share has limited downside potential. This is particularly so as the group's profile of high-end “hard luxury” remains attractive - particularly regarding its exquisite jewelry.

The broker considers that the Richemont share is no longer overvalued, as it is currently trading at a discount of 15% relative to its sector, against an equivalent premium at the beginning of 2017.


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