LUXURY GOODS
Analysts predict some upside for Richemont
Improvement in Swiss watch sales and better GDP numbers from China, one of Richemont’s biggest markets, bode well for the company
As the JSE flirts with new highs, analysts are divided as to whether one of its top performers, Richemont, can continue to support the market into the last quarter of 2017. Greg Katzenellenbogen of Sanlam Private Wealth says Richemont continues to have the "wind behind its back", thanks to an improvement in Swiss watch sales and better GDP numbers from China, one of Richemont’s biggest markets. But Katzenellenbogen is cautious about whether another big share price leap is on the cards. Richemont has gained 28% in the year to date on the JSE and in Switzerland, it is up just more than 26%, but appears to have run ahead of itself, according to consensus forecasts. The stock is trading at about Sf85 ($87), but Bloomberg’s 12-month price target is Sf82.47. However, it is still off its high of Sf95.55, which was reached on August 14 2013. PSG Wealth analyst Ricus Reeders says he "can see" another Sf10 in the share. Locally, however, and perhaps due to expectations that the rand will end ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.