(CercleFinance.com) – Oddo indicates in its study of the day that growth in the luxury sector remains dazzling, but it will be driven by contradictory trends and could slow down a little more visibly during 2022. The analyst expects growth of 9 % this year of the sector against an average close to 12% in recent years.
‘We believe that the medium-term trend remains favorable at +8%/+9% per year in line with long history’.
Oddo recalls that LVMH, Hermès and Richemont (Cartier) recorded growth in 2021 compared to 2019 well above 30%.
‘ After an excellent Q4, demand for luxury goods should remain strong at the start of 2022, but the good performance of local customers in most areas should not overshadow a clear deceleration in annual growth in China in the 2nd half of 2021. A deceleration overall growth is to be expected (we still expect +9% for 2022) ‘indicates the analysis office.
‘This environment confirms our preferences for securities with the strongest brands: LVMH, Hermès and Moncler’ indicates the analyst.
Oddo therefore confirms its Outperformance opinion on LVMH (price target of E837), Moncler (OC 71E) and Hermès (OC 1,660E).
The analyst remains at neutral on Kering (OC 725 E) and Richemont (OC 152 E) and at Underperformance on Swatch (OC 294 CHF) and Burberry (OC 1,910p).
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