The Group's first-half results were much weaker than expected due to China, says UBS. The analyst remains neutral on the stock and has lowered his price target to 175 Swiss francs (from 192 Swiss francs).

'Swatch Group's first-half results showed a significant drop in sales and profits, due to its heavy exposure to China. The CEO expects trends to remain challenging for the remainder of 2024' stresses UBS.

'Group sales for the first half amounted to CHF 3,445 million, -8% compared with CHF 3,747 million (-3% compared with UBSe's forecast of CHF 3,561 million), with sales growth excluding currency of -11% (-6% for UBSe's forecast). EBIT for the 1st half of CHF 204 million was -59% versus the consensus of CHF 497 million (-54% versus UBSe's forecast of CHF 440 million)' says UBS.

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