H&M: Deutsche Bank reiterates its buying advice

(CercleFinance.com) – Deutsche Bank reiterated on Friday its advice to buy H&M, with a price target of 160 Swedish crowns, following the start of the year in a ‘roller coaster’ known by the title.

In a note released in the morning, the analyst recalls that the ready-to-wear giant has seen half of its stock market gains since the start of the year evaporate due to its quarterly publication at the end of March. .

According to him, investors are more worried about a possible bout of weakness in sales than they are betting on good surprises in terms of margins.

For Deutsche Bank, it is also possible that the rise in margins expected in the second quarter will be slowed down by new recourse to promotions.

“But we’re only halfway through the spring/summer season so it’s too early to start worrying,” says the intermediary.

If he says he is revising his EPS forecasts downwards for the current financial year and the next, he underlines that his estimates remain 15% to 20% higher than the consensus due to the ‘solid’ cost control displayed by the group. Swedish.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute a decision-making aid for investors. The responsibility of Cercle Finance cannot be held directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional adviser before any investment. This indicative information does not in any way constitute an incitement to sell or a solicitation to buy.

Source link -84