Investment banking giant Credit Suisse says Richemont’s shares are overvalued considering how much capital Johann Rupert’s luxury goods company will need to pour into its operations. The Swiss bank has downgraded Richemont’s equity to “underperform” from “neutral”, and lowered its price target to CHF64 from CHF73, Bloomberg reports. Richemont’s shares closed down 3.88% on the JSE at R97.87, the worst level in just less than two months. “We believe the market underappreciates the amount of investment needed in all three major businesses, including jewellery,” Credit Suisse said in a note to clients, Bloomberg reports. The outlook for watches “isn’t getting any better”, while the group’s investment in online luxury fashion retailer Yoox Net-a-Porter (YNAP) is likely to be a further drag on profitability. Richemont bought the holding in YNAP it did not yet own for €2.7bn in March 2018. Thanks to that deal, the group’s online sales now make up about 18% of total sales, from 1% previ...

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