H & M: Zone of turbulence | NEUTRAL vs. BUY | SEK190 VS. SEK225 (+46%)
H & M - NEUTRAL vs. BUY | SEK190 VS. SEK225 (+46%)Zone of turbulence
In January H&M announced its objective to double sales over the 2021-30 period and 2022 was supposed to illustrate that ambitious goal, with a strong sales and earnings momentum. However, deterioration in European consumer sentiment and the temporary shutdown of its operations in Russia (c.4% of sales) will undoubtedly hamper top-line growth. The huge EBIT miss in Q1 also confirms that pressure from higher input costs, Russia (c.8% of group EBIT) and opex investments intensifies. We cut our FY22-23 EPS estimates by 9% on average, hence a TP reduced to SEK190 and recommendation downgraded to Neutral.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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