Oddo BHF reiterates its 'underperform' opinion on Swatch Group, with a price target lowered from 235 to 202 Swiss francs, based on a significant readjustment of the margin outlook in its DCF valuation.
While the analyst considers growth of around +8% in the second half of the year to be "rather respectable", he points out that EBIT for 2023 is 10% below consensus, and announces a drastic revision of his EBIT forecasts for 2024 (-22%) and 2025 (-18%) for the Swiss watchmaker.
We do not believe that it will be able to continue to outperform the watch segment as a whole as it did in 2023, hence moderate organic growth is expected for 2024 in an overall context that has become more difficult", it says.
Copyright (c) 2024 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
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 
