Swatch Kept at Outperform at Credit Suisse After Watch Survey
2014-06-03 07:10:10.209 GMT
By Heather Burke
June 3 (Bloomberg) -- Swatch’s recent weakness is an
attractive entry point as investors should have factored in
lower margin ests. for this yr, Credit Suisse says in note.
* Reiterates outperform on Swatch, Richemont
* Cites its 8th global survey of 20 luxury watch retailers,
distributors in U.S., Europe, Asia:
* Those interviewed don’t see growth accelerating in 2H
after Swiss watch exports rose 4% in Jan.-April
* Trade stock levels generally enough
* Mid-price watches ($1k-$5k) may continue to outperform
in 2H
* High-end watches (>$5k) to have better European growth
in 2H
* Uncertainty over effect on Swiss watch industry from
smartwatches
* Uncertainty over smartwatch impact doesn’t help Swatch shrs
* Positive on Swatch on mid-price watch strength, Richemont on
jewelry
* NOTE: Swatch shrs down 10% YTD vs Richemont +5.4%, SMI +5.9%
* NOTE May 28: Swatch 2014 Ebit Margins May Drop, SocGen Says,
Cuts to Hold
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-06-03 07:10:10.209 GMT
By Heather Burke
June 3 (Bloomberg) -- Swatch’s recent weakness is an
attractive entry point as investors should have factored in
lower margin ests. for this yr, Credit Suisse says in note.
* Reiterates outperform on Swatch, Richemont
* Cites its 8th global survey of 20 luxury watch retailers,
distributors in U.S., Europe, Asia:
* Those interviewed don’t see growth accelerating in 2H
after Swiss watch exports rose 4% in Jan.-April
* Trade stock levels generally enough
* Mid-price watches ($1k-$5k) may continue to outperform
in 2H
* High-end watches (>$5k) to have better European growth
in 2H
* Uncertainty over effect on Swiss watch industry from
smartwatches
* Uncertainty over smartwatch impact doesn’t help Swatch shrs
* Positive on Swatch on mid-price watch strength, Richemont on
jewelry
* NOTE: Swatch shrs down 10% YTD vs Richemont +5.4%, SMI +5.9%
* NOTE May 28: Swatch 2014 Ebit Margins May Drop, SocGen Says,
Cuts to Hold
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net