Deutsche Bank on Tuesday raised its price target for Hermès from €1,320 to €1,530, while renewing its 'hold' recommendation on the stock.

In a research note, the broker justifies its upgrade by revising upwards its earnings and margin forecasts for the luxury house, which it believes is currently enjoying 'historic' momentum.

The brand's unique positioning, combined with its exposure to China (which accounts for between 35% and 40% of sales) and its popularity among the most influential consumers in luxury goods, should continue to support a solid earnings trajectory", says Deutsche Bank.

The broker nevertheless considers that other luxury players are better positioned in the short term for a reopening of the Chinese economy, both in terms of valuation and results, which leads it to post a neutral opinion on the value.

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