Stifel reaffirms its 'hold' recommendation on Swatch Group and lowers its target price from 230 to 225 Swiss francs, in the wake of lowered EBIT forecasts of 11% for 2024 and 8% for 2025, the day after the watchmaker's annual results.
The share looks cheap, but weak consumer momentum in China, the cautious behavior of wholesale partners, a strong Swiss franc and more difficult comparatives for MoonSwatch should put a lid on the stock', the broker judges.
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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.