Analyst Rogerio Fujimori from Stifel Nicolaus maintained a Buy rating on Hermes International (HESAF – Research Report) and decreased the price target to €2,800.00 from €2,900.00.
Rogerio Fujimori has given his Buy rating due to a combination of factors that highlight Hermes International’s strong market position and growth potential. The company is expected to maintain a significant growth differential compared to its peers, driven by its untapped pricing power and high visibility in its leather goods segment. This is supported by a loyal and affluent customer base, which is anticipated to help sustain margins better than other companies in the sector.
Furthermore, Hermes has a history of delivering consistent performance regardless of market conditions, offering attractive growth opportunities with its relatively stable low-teen sales growth. The company’s superior brand equity and high retail productivity contribute to its high margins, which still have room for expansion. Despite trading at a premium compared to its historical averages, this is justified by Hermes’ higher profitability, making it an attractive investment opportunity.
In another report released on March 31, HSBC also maintained a Buy rating on the stock with a €3,000.00 price target.
HESAF’s price has also changed moderately for the past six months – from $2380.180 to $2637.000, which is a 10.79% increase.