Oddo BHF reiterates its ‘outperformance’ opinion on Richemont despite a price target lowered from 144 to 136 Swiss francs, after half-year results which ‘unquestionably mark a disappointment on the margins under the effect of a more unfavorable sectoral cycle’.
‘The sharp decline in China has visibly impacted the group’s overall margin over the half-year because it has not stopped its investments to promote and distribute its brands, even if it means adjusting them subsequently if difficulties persist’, specifies ‘analyst.
A reset carried out on its margin assumptions leads Oddo BHF to reduce its results expectations (-5/-6% on annual EBIT forecasts) for the Swiss luxury group, but it reaffirms its confidence in the solidity of its positions in jewelry.
‘The Cartier Van Cleef group (to which we must add Buccellati and recently Vhernier) maintains solid positive growth despite double-digit declines in Asia and presents long-term prospects that are still favorable,’ he explains. .
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