Analyst Oliver Chen from TD Cowen maintained a Buy rating on Compagnie Financiere Richemont SA (CFR – Research Report) and keeping the price target at CHF210.00.
Oliver Chen has given his Buy rating due to a combination of factors that highlight Compagnie Financiere Richemont SA’s potential for growth and market share gains. The company is capitalizing on its previous investments in the supply chain to enhance speed and innovation, particularly in its leading luxury jewelry brands, Cartier and Van Cleef & Arpels. This strategic focus is expected to drive sustained long-term growth through store expansion and product development, especially as consumers shift spending towards hard luxury items like jewelry, which offer a compelling value proposition.
Additionally, Richemont’s stock is attracting interest from long-term investors, which could support a higher valuation multiple. The company’s strong correlation with gold prices and global luxury spending, along with its attractive dividend yield and significant free cash flow, further bolster its investment appeal. Key catalysts such as improvements in the watches business and expansion into new U.S. markets are expected to contribute to future growth, while potential partnerships and margin expansion present additional opportunities for value creation.
In another report released on March 14, J.P. Morgan also maintained a Buy rating on the stock with a CHF175.00 price target.
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