(CercleFinance.com) – Oddo confirms its neutral rating on the Richemont share, with a price target raised from 116 to 134 CHF.
Richemont’s Q3 (calendar Q4) sales come out at 5,403 ME and reflect y/y growth cc at +5% (it was at +19% in Q2).
‘Our forecast could appear conservative at 5,461 ME (+5% y/y cc) in the face of a FactSet consensus before publication which amounted to 5,671 ME, i.e. growth of +7%/+9%, but in fact the publication is just below our expectations and therefore more visibly below those of the consensus’, indicates the analyst.
The group also indicates that the first two weeks of the year saw a marked and encouraging rebound in sales in China after a month of December when activity had been severely disrupted.
According to Oddo, the catch-up in China will be more than offset by now less favorable exchange rate assumptions, leading to a revision of close to -1% on FY 24 EBIT.
‘The FY 25 EBIT forecast comes out unchanged, having also benefited from a slightly more favorable assumption in terms of organic growth (+7.6% against 6.7%) linked to the more visible contribution at this time of the return of Chinese tourism to Europe’ , concludes the broker.
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