Hermès Shares Soar 7.73% at Opening, Boosted by Iran-USA Easing Tensions
This Wednesday morning, the stock of the Parisian saddler gained 7.73%, reaching 1,776 euros, driven by a significant geopolitical easing announced between Washington and Tehran. This increase is part of a broader rebound, with the stock having risen more than 10% over the last seven days, following a difficult quarter marked by a decline of over 15%.
Ceasefire Announcement Between the US and Iran Spurs European Markets
The announcement of a ceasefire between the United States and Iran, along with the prospect of reopening the Strait of Hormuz, has sparked significant relief in European markets this morning. The CAC 40 is up 4.28% during the session, while the SBF 120 is up 4.20%. In this context, Hermès International is among the luxury stocks benefiting the most from this momentum. The sector as a whole is benefiting from the easing: LVMH is up 7% and L'Oréal has advanced 4%. For Hermès, today's rebound allows the stock to move back above its 20-day moving average (1,748.15 euros), a signal that indicates a short-term momentum recovery. The RSI, at 31, was still on the verge of the oversold zone before the opening, which suggested a potential for technical catch-up. Despite this surge, the price remains significantly distant from its medium and long-term averages: the MM50 is at 1,931 euros and the MM200 at 2,104 euros. Over one year, the performance remains negative, at -16.47%.
New Buy Recommendation Issued for Hermès on the Eve of the Rebound
On the eve of this rebound, CIC Market Solutions issued a new recommendation for the stock, upgrading it to 'buy' with a target price set at 2,000 euros. This target level represents a potential upside of about 12.6% compared to the current price of 1,776 euros. This move comes as Hermès' financial calendar looks busy: the first-quarter revenue announcement is expected on April 15, followed by the annual general meeting scheduled for April 17. These events could provide new insights into the company's commercial trajectory, in an environment where the luxury sector faces questions about the dynamics of global demand. The next identified technical resistance threshold is at 2,106 euros, very close to the 200-day moving average, while support is positioned at 1,609 euros.
