Goldman Sachs has raised its recommendation on Hermès, praising the stock's defensive qualities.

In a report on the luxury goods sector, Goldman has raised its recommendation on Hermès from 'sell' to 'neutral', with a price target raised from €1,514 to €2,060.

In its note, the American investment bank highlights the defensive status of the group's business, estimating that 52% of customers remain loyal to the leather goods manufacturer's brand.

The New York-based firm nevertheless deplores its 'demanding' stock market valuation, pointing out that in terms of PER over a one-year horizon, the stock is still trading on the basis of a 67% premium to its comparables, compared with already 69% in 2022.

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