Richemont: Resilient Hard-Luxury Leader With Accelerating Growth Justifies Buy Rating and CHF 210 Target

TD Cowen analyst Oliver Chen assigned a Buy rating on Compagnie Financiere Richemont SA today and set a price target of CHF210.00.

Oliver Chen has given his Buy rating due to a combination of factors that highlight Richemont’s resilient growth and strategic positioning in the luxury sector. He points to the company’s strong third-quarter performance, with notably faster-than-expected sales growth in its Jewelry Maisons and across key regions such as Europe, the Americas, and a gradually improving China. Richemont’s leading brands, particularly Cartier and Van Cleef & Arpels, are seen as core assets anchoring a portfolio of enduring, iconic products, giving the group a structural advantage in branded, non-bridal jewelry—regarded as one of the most defensive segments in luxury. Chen believes that consumers’ increasing preference for “hard luxury” over categories like handbags is driving sustainable demand for Richemont’s offerings and supporting ongoing market share gains.

At the same time, Chen acknowledges headwinds from foreign exchange and higher tariffs on Swiss and EU jewelry exports but expects these pressures to be more than offset by robust topline momentum and operating leverage, leading him to slightly raise his earnings outlook. He forecasts stronger organic revenue growth than the broader market anticipates, particularly in Europe and the Americas, and sees continued acceleration through 2026 and beyond. While Richemont’s valuation is above its historical average, Chen notes that it still trades at or below key peers on forward earnings, which, in his view, is justified by its superior growth profile and category leadership. This combination of solid fundamentals, favorable mix exposure, and reasonable relative valuation underpins his Buy recommendation and his reiterated price target of CHF 210.

Chen covers the Consumer Cyclical sector, focusing on stocks such as Compagnie Financiere Richemont SA, LuxExperience, and Tapestry. According to TipRanks, Chen has an average return of 5.9% and a 52.61% success rate on recommended stocks.

In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a CHF195.00 price target.