HERMÈS : Oddo BHF lowers its price target
Oddo BHF confirms its neutral opinion on the stock, but lowers its price target to E2,195 (from E2,291).
' This slowdown has been confirmed and should be reflected in the Group's activity in Q2, with the Asia-Pacific region experiencing slower growth.
The slowdown in China is affecting Silks & Textiles, Ready-to-Wear & Accessories and Watches more severely, while the categories comprising the most expensive products (Leather Goods and, to a certain extent, Other Crafts, which includes Tableware and Jewelry) are unsurprisingly more resilient," says the analyst.
The analyst has lowered his growth forecast for the Asia-Pacific region from 10% to 5% for the 2nd quarter, and does not expect any visible improvement in the 3rd quarter, which means that growth for 2024 as a whole in the region is now expected to be below 10%, at 8.5% (it was +14% in the 1st quarter).
Group sales growth is therefore lowered from 12.2% to 10.2% in Q2, and from 13.6% to 12.4% for 2024 as a whole.
With regard to profitability, we have lowered our H1 EBIT margin forecast from 42.4% to 41.5% (gross margin y/y down -120 bp)," says Oddo BHF.
' All in all, the downward revision to our sales estimates
and EBIT does not exceed 1%, but our previous EBIT forecasts were more than 5% below the recent Visible Alpha consensus '.
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