Photo credit © Hermès International
(Boursier.com) — In the last positions of the CAC40, Hermes International fell 1.8% to 1,956 euros, its worst performance in almost a month. Morgan Stanley reduced its 2024 earnings estimates for the saddler by 2%. “Overall, we continue to expect Hermès to significantly outperform the rest of the sector, albeit to a slightly lower extent than initially expected,” the analysts write. The brand is perhaps not completely immune to the pressures exerted on middle-income consumers, adds the broker, to ‘outperform’ on value with a target of 2,000 euros.
Harry Wolhandler, head of equities at Meeschaert AM, tells ‘Bloomberg’ that Nike’s disappointing publication which pointed out some weakness in China also has a negative impact on Hermes, because the country is a key market for the luxury market. In addition, 2,000 euros is a technical level difficult to exceed for the stock which has increased significantly recently, according to the analyst.
In the wake of Hermes, LVMH lost 1% to 735.7 euros and Kering returns 0.6% to 399.3 euros.
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