(CercleFinance.com) – The stock ended the day up 1.5%. UBS on Monday raised its price target on the Richemont share, which it raises from 146 to 154 Swiss francs, considering the new financial year 2023 as an “important year” for the luxury group.
In a research note, the broker explains that he expects a “crucial” year in the change in market perception of the case, a phenomenon which he believes should lead to a revaluation of the stock market.
‘Investors continue to see Richemont as a cyclical stock by nature, despite the reduction in its risk profile following the changes made in recent years (less exposure to wholesalers, better inventory control, expansion of the offer, …)’, underlines UBS in its study.
Praising the high-end positioning of the group, the broker expects its results momentum to continue and says it expects a “solid” publication on January 18 when its quarterly figures are released.
When buying the stock, UBS still makes it its preferred value (‘top pick’) within the luxury sector.
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