Handelsbanken is reiterating its buy rating for fashion retailer H&M, maintaining a target price of SEK 210 ahead of the company's fourth-quarter report.
SHB continues to believe that the market is underestimating H&M's margin, both for Q4 and for the coming year.
"Following the strong share price performance over the past six months, we do believe the upside for the stock is somewhat more limited. We forecast an unchanged dividend of SEK 6.80 and expect the main shareholder's purchases to resume after the report," the bank states.
Hennes & Mauritz AB (H&M) specializes in designing and distributing clothes, accessories and cosmetics for men, women and children. The products are sold primarily under the H&M, H&M Home, COS, Monki, Weekday, Afound, & Other Stories and ARKET brands. Products are manufactured by subcontractors.
At the end of November 2024, products are marketed through a network of 4,353 points of sale (of which 258 franchises) located mainly in Sweden (90), the United States (509), Germany (407), the United Kingdom (228), France (188), Italy (157) and the Netherlands (100).
Net sales are distributed geographically as follows: Germany (15.2%), the United States (13.1%), the United Kingdom (7.4%), France (4.7%), Sweden (3.7%), Italy (3.3%), Poland (3.6%), Netherlands (3.1%), Switzerland (2.9%), Canada (2.8%) and others (40.2%).
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