Oddo BHF maintains its 'neutral' rating on Hermès International shares, with a price target raised from €1,858 to €2,145 to take account of higher estimates and more favorable market parameters.

As a reminder, Hermès has published 2023 sales of €13,427m, up 15.7% y/y, with Q4 at +17.5% y/y cc, showing an acceleration after the +15.4% observed in Q3).

EBIT for 2023 stands at 5,650 ME (margin 42.1% vs. 40.5% in 2022).
Our forecast for sales/EBIT 2023 was 13,315 ME / 5495 ME', reports the analyst.

Against this backdrop, Oddo BHF has raised its organic growth forecast for 2024 from 10.1% to 11.5%. Growth in 2025 is still expected to be +10%, with the EBIT margin also adjusted upwards from 40.1% to 40.3%.

This leads us to raise our EBIT forecasts by +4% for 2024 and +3% for 2025", the broker points out.

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