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Hermes International: Strong Growth and Strategic Positioning Justify Buy Rating

Hermes International: Strong Growth and Strategic Positioning Justify Buy Rating

DBS analyst Mavis Hui maintained a Buy rating on Hermes International (HESAFResearch Report) today and set a price target of €2,950.00.

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Mavis Hui has given her Buy rating due to a combination of factors that underline Hermes International’s strong performance and strategic positioning. The company reported robust revenue growth of 11% year-over-year for the third quarter of 2024 and 14% for the first nine months of 2024, driven by consistent performance across all regions, with Japan particularly showing a significant increase. The Leather Goods and Saddlery sector, a key segment for Hermes, also experienced a notable 17% growth.
Additionally, Hermes’ commitment to maintaining its artisanal craftsmanship and exclusivity has helped solidify its prestigious brand image, which continues to attract a loyal customer base. The company’s deliberate control over production and distribution channels further enhances product desirability. Despite economic uncertainties, Hermes remains confident in its long-term development strategy and has set an ambitious target price of EUR 2,950 per share, reflecting a less demanding valuation after a recent share price retreat.

In another report released on February 4, Bernstein also maintained a Buy rating on the stock with a €2,450.00 price target.

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