reports
- Jelena Sokolova
Swatch’s Luxury Watch Brands and Harry Winston Drive Sales; Margins ...
We maintain our fair value estimate and narrow moat rating for Swatch as it delivered full-year results slightly above our forecasts (constant-currency growth 1% higher and operating profit in line with expectations). As expected, luxury brands performed strongly, driven by recovery in the Asia-Pacific region. Harry Winston jewellery also showed strength, in line with recently reported jewellery peers (Richemont, Tiffany, and LVMH all reported solid sales in their jewellery divisions in the seco...
- Jelena Sokolova
Raising Swatch FVE from CHF 333 per share to CHF 345 to account for TV...
After reviewing Swatch’s full-year results, we are maintaining our narrow moat rating and our fair value estimate of CHF 333 per local share ($16.70 per ADR). With strong recent share price performance, demand recovery has been priced in, and we view shares as fairly valued. The overall revenue decline of 10.6% was in line with our expectations. The operating margin stood at 10.7%, which was slightly better than we expected, thanks to a steeper reduction in material purchases, while most of th...
- Jelena Sokolova
Transferring Coverage of Swatch: Downgrade to Narrow Moat, Stable Tren...
We are reinitiating coverage of Swatch with a narrow moat rating and a fair value estimate of CHF 333, implying 8% upside from the current market price. Our narrow moat rating is based on intangible assets and cost advantage. We take a more pessimistic view on the moat, given the company’s lack of distribution control and production discipline, as well as uncertainty on smartwatch substitution over the next 20 years. Swatch Group’s luxury brands boast 100- to 200-year histories and iconic co...
- Andreea Hotaranu
Transferring Coverage of Swatch: Downgrade to Narrow Moat, Stable Tren...
We are reinitiating coverage of Swatch with a narrow moat rating and a fair value estimate of CHF 333, implying 8% upside from the current market price. Our narrow moat rating is based on intangible assets and cost advantage. We take a more pessimistic view on the moat, given the company’s lack of distribution control and production discipline, as well as uncertainty on smartwatch substitution over the next 20 years. Swatch Group’s luxury brands boast 100- to 200-year histories and iconic co...
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