Stifel reaffirms its 'hold' recommendation on Swatch Group, while lowering its target price from 215 to 195 Swiss francs, in the wake of a reduction in its sales and operating profit projections for 2024 and 2025.

China saw a sharp drop in sales of over 30% in the first half of the year, and is likely to remain a difficult market in the second half", the broker recalls, while noting the implementation of cost reductions to avoid further margin erosion.

According to Stifel, the Swiss watchmaker's share price is unlikely to recover until Chinese consumer trends improve and earnings revisions stabilize.

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