Stifel raises its target price for the Swiss luxury good's stock to 180 CHF (from 160 CHF), confirming its 'buy' recommendation on it.
Following its 2025 results, we are raising our EBIT forecasts for 2026 and 2027 by 1% and 2% respectively, reflecting higher forecasts for the Jewelry Houses, which more than offset lower estimates for the specialized watchmakers, the broker said.
Regarding its EBIT margin, the analyst expects exchange rates to have a negative impact of 80bp on the margin for FY 2026 at current rates.
Our EBIT margin forecast of 21.1% for fiscal year 2026 is roughly equivalent to the 20.9% forecast for FY 2025, Stifel concludes.
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Compagnie Financière Richemont SA is a world leader in luxury products. Net sales break down by family of products as follows:
- jewelry items (71.6%): the brands Cartier (world No. 1 in jewelry), Van Cleef & Arpels, and Giampiero Bodino;
- luxury watches (15.4%): Piaget, A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin, Officine Panerai, IWC Schaffhausen, Baume & Mercier and Roger Dubuis brands;
- other (13%): primarily pens, fine leather goods articles and clothing under the following brands: Montblanc, Chloé, Old England, Purdey, and Alfred Dunhill.
Net sales break down by activity between retail distribution (70.3%), wholesale distribution (23.4%) and online distribution (6.3%).
Net sales are distributed geographically as follows: Switzerland (3.2%), the United Kingdom (3.8%), Europe (15.9%), China (19.6%), Japan (10.2%), Asia (13.8%), the United States (21%), Americas (3.5%), Middle East and Africa (9%).
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