Swatch is down nearly 4% in Zurich as Stifel has announced that it is reducing its target price for the stock from 225 to 215 Swiss francs, while confirming its 'hold' recommendation.

The analyst indicates that he has adopted a more conservative view of the outlook for the Swiss watch industry for the remainder of 2024, taking into account a greater annual decline for mainland China (representing 1/3 of the Group's sales).

Against this backdrop, Stifel has announced a further reduction in its earnings before interest and taxes (EBIT) forecasts for fiscal 2024 and 2025, by 4% and 6% respectively.

'The share is unlikely to revalue as long as Chinese consumer trends remain weak and inflation weighs on demand from Western consumers aspiring to luxury', concludes the analyst.

Copyright (c) 2024 CercleFinance.com. All rights reserved.