Richemont: Share rebound, an analyst in support

( – The title is picking up today (+1%) after falling 13.10% on Friday following the announcement of the results.

Jefferies points out that the group achieved a turnover higher than forecast (19.2 billion euros against 18.7 billion euros for Jefferies and 18.8 billion euros for the consensual) but a clear shortfall in gain on EBIT (3.4 billion euros against 3.8 billion euros for jefferies and the consensus).

Following this announcement, Jefferies confirms its buy advice with a target price of 140 CHF.

Jefferies indicates that for the Watches business, the turnover of 3.4 billion euros is slightly higher, the EBIT of 0.6 billion euros or 17.3% is insufficient (jefferies 20%).

‘In the fourth quarter, Europe grew by 43%, the Americas by 46%, Asia-Pacific by 8%, jewelry by 25% and watches by 41%’ also indicates the analyst.

Oddo confirms for its part its neutral opinion on the stock but lowers its target price to 125 CHF (against 140 CHF).

Oddo was expecting E19,094 million respectively (i.e. growth CER in the 4th quarter of +26%) and E3,765 million (margin at 19.7% of which 17.8% in the 2nd half) and the pre-publication FactSet consensus amounted to respectively 19071 ME and 3805 ME.

‘ The annual EBIT comes out nearly 10% below expectations with an increase in operating costs in H2 which, if expected and announced by the company, goes much further than expectations (operating expenses represented 41.4% of sales in S1, they go to 48.2% on S2) ‘indicates the analysis office.

‘ Although YNAP’s EBIT loss was visibly reduced in H2, Maisons Joailliers et Horlogers Spécialisés recorded an increase in the margin over the financial year -70 bps / -80 bps below expectations, hence the impression of a operational leverage compared to before COVID less strong at Richemont Maisons Joaillères (margin gain of around 300 bps) than at LVMH F&L (observed gain of 800 bps) or at Hermès (+500 bps) ‘adds Oddo.

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