Hermès: Stifel upgrades stock

(CercleFinance.com) - On Monday Stifel announced that it has upgraded Hermès shares from 'hold' to 'buy', with a target price raised from E2150 to E2560.


The broker says that it has raised its operating profit (Ebit) forecasts for the luxury house by 3% for 2025-2026, with estimates that are 3% to 4% higher than the consensus.

According to the analyst, the growth differential observed between the Paris-based company and the rest of the luxury goods sector should remain significant this year, thanks to the company's price control, the visibility enjoyed by the leather goods segment and the loyalty shown by its wealthy clientele.

This combination of factors should enable the group to protect its margins better than other players in the sector in 2025, continues Stifel, which expects organic sales growth of 11.5% in 2025, compared with 4% for the sector.

In 2024, the group had already seen its organic growth reach 13%, it recalls, in a market that was flat overall.


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