Hugo Boss: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse confirms its neutral rating on the Hugo Boss share, although has taken a slice out of its target price, which is currently 25 euros (vs.
33 euros previously).

"We adjust our FY20e organic sales forecasts to a 22% drop and our operating profit estimate to E57m. In particular, we model a 57% fall in organic sales in 2Q and a mild recovery in 2H with organic sales down 10%," the broker says.

"Our FY21e sales remain 10% below FY19 levels," it adds.

Analysts believe that last year's moderate growth, coupled with a prolonged weakness in demand in Europe/US that is ahead have highlighted the company's need to implemenet major restructuring.

Credit Suisse expects the group to appoint a new CEO by September.


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