Morgan Stanley analyst Edouard Aubin upgraded the rating on Compagnie Financiere Richemont SA (CFR – Research Report) to a Buy today, setting a price target of CHF200.00.
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Edouard Aubin has given his Buy rating due to a combination of factors that contribute to a positive outlook for Compagnie Financiere Richemont SA. One of the key reasons is the company’s outstanding performance in the luxury goods sector, with its share price appreciating significantly, making it one of the best performers. This is further supported by the robust sales figures that have exceeded market expectations, indicating strong demand for Richemont’s offerings.
Moreover, Aubin highlights the company’s strong balance sheet and the high visibility of sales and earnings growth in forthcoming quarters, which are crucial for sustaining momentum in the luxury market. The recent management changes, including the appointment of Nicolas Bos as Group CEO, also signal potential for strategic growth and innovation. With a DCF-implied valuation suggesting a higher share price, and expectations of earnings outperformance and multiple expansions, Aubin justifies a Buy rating for Richemont’s stock.
Aubin covers the Consumer Cyclical sector, focusing on stocks such as Hermes International, Prada SpA, and Birkenstock Holding plc. According to TipRanks, Aubin has an average return of 5.0% and a 53.52% success rate on recommended stocks.
In another report released on January 30, HSBC also maintained a Buy rating on the stock with a CHF200.00 price target.