Deutsche Bank announced on Tuesday that it had raised its price target for H&M from SEK 155 to SEK 165, while renewing its 'sell' recommendation on the stock.

In a research note, the analyst says he expects the ready-to-wear group to report 'solid' quarterly results again on June 27.

Following this publication, the market consensus should finally incorporate the prospect of an operating margin (Ebit) communicated by the management team, he adds.

This is quite a turnaround compared with the difficult period at the start of 2023, when the forecast was initially unveiled and deemed implausible by investors", continues DB.

The intermediary points out that the turnaround in gross margin achieved so far by the clothing manufacturer has proved more marked than expected, which should lead to solid results given the Swedish group's current control of costs and inventories.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.