Hennes & Mauritz

Hennes & Mauritz

den 21 januari 2016

Important legal information

Hennes & Mauritz, a Swedish fashion company, has to deal with a difficult Q4 2015. The negative effect in forex is reaching its peak and sets gross margin under pressure. Analysts of Svenska Handelsbanken expect an EBIT for H&M at SEK 7,189 million, which corresponds to a decrease of 7% on a year-on-year comparison.

According to a current company statement, it is going to be discussed about further store growth. In addition, the fast growing online business could be a prospective alternative to the established brick and mortar business. However, analysts of Svenska Handelsbanken expect a store growth in 2016 above ten percent.

Although the sentiment is poor against H&M shares, Svenska Handelsbanken recommends a BUY rating. They expect that many worries are already discounted in the share price. Also consensus Q4 earnings expectations are already lowered by 8% which means that upcoming earnings risks could be limited. Svenska Handelsbanken’s target price is set on SEK 380.

In contradiction Bloomberg consensus is cautious and set the 12-month target price to SEK 329,39. Currently, 14 analysts set Hennes & Mauritz on BUY, 11 on HOLD and 13 on SELL recommendation, which correspond to an aggregated HOLD rating.



2022-11-30 07:53:47