(Boursier.com) — Oddo BHF takes stock of Hermes after the spectacular performance of the stock over the past year (+32.8% against a sector of only +9.2%). In fact, the stock is the big winner in the industry over the last 5 years with an average annual progression close to 32% (for a sector at around +18%), which, on the basis of an average annual progression of the group’s EBIT over the period of 18% (for a sector at c.+15%), implies a particularly vigorous relative rerating.
The analyst believes that this outperformance will be difficult to maintain over 2024 as the slowdown in growth is expected to lead to increased pressure on the margin. He has no doubts about the long-term outlook for the group, which probably remains the most attractive franchise in the sector over such a horizon, but maintains a certain caution for the next 12 months. He thus maintains his ‘neutral’ opinion with a target price lowered from 1,912 to 1,858 euros to reflect the adjustment of his forecasts.
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