SWATCH : Stifel reduces its target price for the stock
May 13, 2024 at 06:45 am EDT
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Stifel maintains its 'hold' rating on Swatch shares, with a price target lowered from 225 to 215 Swiss francs (CHF).
The analyst indicates that he has adopted a more conservative view of the outlook for the Swiss watch industry for the remainder of 2024, taking into account a greater annual decline for mainland China (representing 1/3 of the Group's sales).
Against this backdrop, Stifel has announced a further reduction in its earnings before interest and taxes (EBIT) forecasts for fiscal 2024 and 2025, by 4% and 6% respectively.
'The share is unlikely to revalue as long as Chinese consumer trends remain weak and inflation weighs on demand from Western consumers aspiring to luxury', concludes the analyst.
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The Swatch Group SA is a Switzerland-based holding company engaged in the apparel and accessories industry. The Companyâs activities are divided into two core business segments: Watches and Jewelry, as well as Electronic Systems. The Watches and Jewelry segment includes the production and sale of branded watches, jewelry and quartz movements, notably the brands Breguet, Harry Winston, Blancpain, Glashuette Original, Jaquet Droz, Leon Hatot, Omega, Longines, Rado, Union Glashuette, Tissot, Balmain, Certina, Hamilton, Calvin Klein watches and jewelry, Swatch and Flik Flak. The Electronic Systems segment includes the production and marketing of electronic components, notably batteries and sports timing equipment. The Company also supplies products from these segments to third-party watchmakers. Swatch Group SA is represented worldwide through its subsidiaries and distributors, notably Tourbillion and Hour Passion, and operates Swiss production plants in Boncourt, Grenchen and Villeret.
SWATCH GROUP 
