Moncler, LVMH Among Least Exposed to Weaker Yuan: Deutsche Bank
2015-08-19 07:21:42.970 GMT
By Marianna Aragao
(Bloomberg) -- Deutsche Bank estimates an average negative
impact of ~4% on luxury companies’ profits as a result of yuan
devaluation.
* Analysis assumes 5% depreciation of yuan vs all currencies
* Most negatively impacted Swatch (7%), least Brunello (2%)
* Moncler, LVMH also among the least exposed to weaker yuan;
both bank’s top picks
* Sees moderate devaluation as “manageable” by cos.
* Says last week’s stock price reaction already discounting
more than actual 3% yuan depreciation
* Sees sector trading at 25% premium vs overall mkt, was ~40%
historically; current valuation ’’does not allow for bad
surprises’’
* NOTE: On Aug. 13: Luxury Declines From Yuan Devaluation Look
Overdone, Exane Says
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To contact the reporter on this story:
Marianna Aragao in London at +44-20-3525-9199 or
mduartedeara@bloomberg.net
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net
2015-08-19 07:21:42.970 GMT
By Marianna Aragao
(Bloomberg) -- Deutsche Bank estimates an average negative
impact of ~4% on luxury companies’ profits as a result of yuan
devaluation.
* Analysis assumes 5% depreciation of yuan vs all currencies
* Most negatively impacted Swatch (7%), least Brunello (2%)
* Moncler, LVMH also among the least exposed to weaker yuan;
both bank’s top picks
* Sees moderate devaluation as “manageable” by cos.
* Says last week’s stock price reaction already discounting
more than actual 3% yuan depreciation
* Sees sector trading at 25% premium vs overall mkt, was ~40%
historically; current valuation ’’does not allow for bad
surprises’’
* NOTE: On Aug. 13: Luxury Declines From Yuan Devaluation Look
Overdone, Exane Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Marianna Aragao in London at +44-20-3525-9199 or
mduartedeara@bloomberg.net
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net