Swatch: Stifel lowers target price

(CercleFinance.com) - Stifel maintains its 'hold' recommendation on Swatch Group shares, lowering its target price from 195 CHF to 165 CHF, in the wake of a 21% reduction in its 2025 EBIT forecast for the Swiss watchmaker.


In its note on the outlook for European luxury goods stocks, the broker nevertheless raises its view of the sector from 'cautious' to 'neutral' for the year ahead, before an expected return to +7% organic growth in H2 2025.

Estimating that H2 2024 would mark the sector's low point in the current down-cycle, Stifel hopes for a sequential improvement in sales in the first half of 2025, thanks to 'green shoots' in the USA and stimulus measures in China.


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