Report
Simen Aas
EUR 429.14 For Business Accounts Only

Hennes & Mauritz (Buy, TP: SEK190.00) - Pricing power in focus

We are neutral ahead of H&M’s Q3 sales update as we expect the focus to be on its full Q3 results later in September. Although turbulent summer weather in Europe probably hampered sales, we believe the cold weather MTD bodes well for the start of its autumn sales season, supported by sequentially higher prices QOQ helping gross margins. We have upgraded to BUY (HOLD) and raised our target price to SEK190 (185) on higher estimates as well as an improved risk/reward.
Underlying
H&M Hennes & Mauritz AB Class B

H & M Hennes & Mauritz is engaged in the sale of clothing and cosmetics in Sweden and internationally. Co.'s stores offer basics, tailored classics, sportswear, and maternity clothes for women; basics, leisurewear, and seasonal fashions for men; denim and street fashions; and fashion wear for children and teenagers, as well as accessories, underwear, and shoes. Co. also provides makeup and body care products; and home fashion products, which include interior textiles for the bedroom, bathroom, living room, and kitchen. Co. has approximately 3,132 stores, including 110 franchise stores, 85 COS stores, 79 Monki stores, 21 Weekday stores, 8 & Other Stories stores and 3 Cheap Monday stores.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Simen Aas

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