(CercleFinance.com) – The stock fell nearly -2.5% as several analysts lowered their price targets.
Oddo BHF reaffirms its ‘underperforming’ opinion on Swatch with a price target lowered from 286 to 265 Swiss francs, explaining that despite ‘rather honourable’ half-year results, it does not share the company’s optimism for the rest of 2022.
The design office persists in thinking, beyond a threatening short-term situation, that the group is not in a position to grow beyond 5% per year in steady state (and normalized inflation), which seems assured to him for the luxury sector as a whole.
Given the more uncertain macroeconomic environment, Oddo takes into account a higher beta coefficient in its target price, the potential performance of which appears to be significantly lower than those expected for most other stocks in the sector.
Invest Securities reaffirms its ‘buy’ opinion on Swatch despite a price target reduced from 356 to 312 Swiss francs, considering that the Swiss watchmaker is ’embarked on a global recovery’ and that its title remains ‘very discounted’.
The research department points out that the half-year results unveiled on Thursday associate all the divisions with growth for the first time in a long time, excluding China for which Swatch ‘tables on a recovery, with no real deceleration factor elsewhere’.
“If this optimism deserves to be tempered, the multiplication of growth levers that the group has activated should make it possible to consolidate the growth of the first half”, judges the analyst in charge of the file.
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