Morgan Stanley adjusts its forecasts for Hermès: A slowdown expected?

Source Investing

Investing.com - Hermes International SCA (EPA:HRMS) stock rebounded to around €1,900 after dropping more than 12% last week due to ongoing concerns about a slowdown in demand in China, following disappointing economic indicators.

Against this backdrop, Morgan Stanley (NYSE:MS) revised its forecast for Hermès, lowering the third quarter 2024 sales growth to +10.9% from a previous +16%, and reducing the 2024 EBIT margin forecast to 40.1% from 40.9%.

  • ⚠️Take advantage of INVESTINGPRO+ to find the best investment opportunities in the markets in France and elsewhere.⚠️
  • Click here to take advantage of the 1-year Pro+ subscription
  • Click here to take advantage of the 2-year Pro+ subscription

These adjustments follow similar revisions for LVMH (EPA:EPA:LVMH), Richemont (LON:0QMU) (SIX:CFR), and Moncler (BIT:MONC). Despite this, Morgan Stanley maintains a positive outlook for Hermès, believing the company will continue to outperform in the luxury sector, with a price target set at €2,300.

Morgan Stanley's optimistic forecasts are notably based on Hermès' ability to maintain a strong pricing policy and increase its market share due to the brand's desirability. Additionally, there remains growth potential in China, where consumer spending is still below other markets.

However, risks remain, including a possible decrease in demand due to the contraction of multiples in the luxury sector in China and pressure on middle-class consumers.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Apr 01, Tue
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
22 hours ago
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
Bitcoin Price Struggling but Short-Term Holders Might Be Setting the Stage for $150KBitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
Author  NewsBTC
17 hours ago
Bitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
17 hours ago
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Author  FXStreet
16 hours ago
Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
goTop
quote